In the eurozone, inflation slowed slightly in June, to 2.5% over one year

Since October 2022, the increase in consumer prices in the eurozone has been divided by four.

Inflation fell slightly in Juneat 2.5% over a year, after a 2.6% in May, thanks to food and energy prices, according to figures published Tuesday, July 2 by Eurostat, the statistical office of the European Union. The increase in consumer prices is thus once again approaching the 2% target set by the European Central Bank (ECB). Analysts at Factset and Bloomberg were expecting this 0.1 point drop in June, which comes after a 0.2 point increase the previous month. As a reminder, a drop in inflation does not mean a drop in prices, but a slowdown in the increase.

The slight decline in inflation in June is explained by a slowdown in price increases of 0.1 points for both food (including alcohol and tobacco), to 2.5% over one year, and energy, to 0.2%. Inflation of service prices and that of industrial goods, on the other hand, remained stable compared to May at 4.1% and 0.7% over one year respectively.

Overall, the rise in consumer prices in the eurozone has been more than divided by four since the record of 10.6% over one year reached in October 2022 when energy prices soared in the context of the war in Ukraine. To stem inflation, the ECB had raised borrowing costs at an unprecedented pace from July 2022. On June 6, it began cutting its key interest rates, providing a small breath of fresh air to ease tensions on housing credit and corporate loans.