Euro zone inflation edges higher, hitting ECB’s 2% target in June
According to flash data from the statistical agency Eurostat on Tuesday, Euro zone inflation rose to a slightly 2% in June, ie consumer prices in the single money area is currently in line with the 2% target of the European Central Bank.
Economists who participated in the survey by Reuters expected to come at 2% in June in June. Euro zone inflation had fallen more than expected in May.
Energy, food, tobacco and alcohol prices excluding the core inflation, in June 2.3% did not change.
Closely monitored service inflation pressure was significantly cooled in May, after a 4% reading in April, 3.2% reached 3.3%.
The individual inflation pressures published by the Great Euro Zone economies last week showed a small increase in France and Spain in the compatible inflation rate in Germany, but there was no change in Italy in June – this showed that the wider euro zone reading would heal to 2% targeted by the ECB.
This increased the expectations that the Central Bank would prefer to reduce interest rates in the third quarter.
Philip Lane, the Chief economist of ECB, told CNBC on Tuesday that he believes that the last period of monetary policy interventions to control inflation were “done”.
“We think that the last cycle was made by downloading inflation from the summit of 10[%]Up to 2%, this element is over, but on a forward basis, we must be ready to make sure that any deviation we see is not buried, Lana Lane said in an interview with CNBC’s Annette Weisbach in Portugal’s annual forum in Portugal.
Lane said ECB should be connected to the data, but will not respond to any “Blip” isolated in inflation in the future.
On May 9, 2025, Frankfurt is a lighting that marked the 75th anniversary of the Schuman Declaration at the Grossmarkhalle building in the European Central Bank center in Frankfurt, Germany.
Through Alex Kraus/Bloomberg Getty Images
Analysts warned that external factors can still disrupt the orbit of disclation, but continuous high service inflation, the latest volatility in oil prices behind the conflict in the Middle East, and warned that all concerns of Potential US trade tariffs.
However, if economists do not take place in the next few months and disflantist tendency persists, the economists believe in keeping rates constant at the next meeting of the Central Bank in July, but they can choose a deduction in September.
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