Eurozone inflation resumed downward trend in June following ECB interest rate cut

LONDON (ICIS)–Inflation in the eurozone resumed its downward trend in June, falling to 2.5% from 2.6% in the previous month, according to official data on Tuesday.

The rate of inflation has been ticking down consistently over the past few months, with the exception of May which saw a 0.2 percentage point increase from April.

June’s annual inflation was mainly driven by services, followed by food, alcohol & tobacco, non-energy industrial goods and energy, statistics agency Eurostat said in its flash estimate, which is subject to revision.

The European Central Bank (ECB) cut its key interest rates for the first time since 2019 on 6 June as inflationary pressures broadly eased.