Eurozone inflation fell more than expected to 5.5 per cent in June, its lowest rate since the start of last year, but any relief for policymakers was tempered by a slight rebound in core consumer price growth.
Annual inflation in the single currency zone was down from 6.1 per cent in May, the EU’s statistical office said on Friday. It was also below the 5.6 per cent forecast in a poll of economists by Reuters.
But core inflation, which excludes energy and food, was 5.4 per cent, up from 5.3 per cent in May. This was a setback for the European Central Bank, which has said it will keep raising interest rates until underlying price pressures are clearly falling towards its 2 per cent target.
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