Eurozone CPI in line with expectations in June

Consumer prices in the Eurozone grew at a slower pace in June, official figures released on Tuesday showed.

Consumer prices this month grew in line with expectations, edging 0.2% higher year-on-year but declined 0.1% from May, when they rose for the first time in six months.

Excluding prices for energy, food and alcohol inflation also eased, as the core annual rate dropped to 0.8% from 0.9% as the rise in services prices slowed to 1.0% from 1.3% on the year.

"Ignoring the volatile components, it is clear that inflation is far out of kilter with the European Central Bank’s target of close to 2%," said Jennifer McKeown, European economist at Capital Economics.

"Looking ahead, energy effects should continue to push headline inflation a bit higher.

"Even assuming that the slow economic recovery continues despite the Greek crisis, this will do little to erode the spare capacity in the economy and underlying price pressures will remain weak."