Brussels – Good news for the Eurozone: inflation fell to 2.8 per cent in June, marking an expected drop of 0.4 percentage points compared with May. This is according to Eurostat’s preliminary estimates released today (1 July). The final figures will be released on 17 July, and if they confirm the estimates, June would mark the first trend reversal this year, as the inflation rate has risen continuously since January: from 1.7 per cent in January, 1.9 per cent in February, 2.6 per cent in March, 3 per cent in April, and 3.2 per cent in May.
According to the European Statistical Office, the main factor driving down inflation in June was the fall in energy costs (8.7 per cent from 10.8 per cent in May), along with the fall in services (3.2 per cent from 3.5 per cent in May) and food, alcohol, and tobacco (1.6 per cent from 1.9 per cent in May). The cost of non-energy industrial goods remained stable (0.9 per cent).
Among the major eurozone economies, a marked fall is expected in France between May and June (-0.8 percentage points, to 2 per cent), alongside more modest declines in inflation in Germany (-0.3 percentage points, to 2.4 per cent) and Italy (-0.1 percentage points, to 3.1 per cent). Inflation remained stable in Spain (3.6 per cent).
