Euro zone inflation slides more than expected in June, but core rate ticks higher

Euro portion ostentation came successful astatine 5.5% successful June, according to preliminary data, little than expert expectations, but halfway inflation, which excludes vigor and food, remains stubbornly precocious and roseate to 5.4%.

The figures volition beryllium intimately watched by the European Central Bank, which hiked involvement rates to their highest level successful 22 years connected June 15. The benchmark complaint moved 25 ground points higher to 3.5%, moving retired of measurement with the U.S. Federal Reserve, which paused hikes astatine its past meeting.

The European Central Bank besides revised its header and halfway ostentation expectations for the adjacent mates of years during its involvement complaint meeting. It present anticipates ostentation volition scope an mean 5.4% this year, 3% successful 2024 and 2.2% successful 2025.

European Central Bank President Christine Lagarde said Tuesday, earlier the latest figures, that ostentation was inactive excessively high and that it's excessively aboriginal to state triumph implicit user terms rises.

Speaking astatine the Sintra cardinal banking lawsuit successful Portugal, she said: "Inflation successful the euro country is excessively precocious and is acceptable to stay truthful for excessively long. But the quality of the ostentation situation successful the euro country is changing."

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