Euro area CPI inflation slows in June

According to Eurostat, the headline rate of euro area consumer price increases slowed from the 6.1% year-on-year pace observed in May to 5.5% for June, as expected.

At the core level on the other hand, the annual CPI rate edged up from 5.3% to 5.4%, although economists too had correctly anticipated that.

In comparison to the month before, energy prices were the main drag, falling by 0.7% while prices for non-energy industrial goods dipped by 0.1%.

Services prices however increased by 0.6% and those for food, alcohol and tobacco by 0.4%.

Headline and core CPI both rose by 0.3% versus May.

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