The eurozone inflation take a break. In June, the Consumer Price Index (CPI) was located in the 2.8%compared to 3.2% in May and below expectations, according to the preliminary estimate published by Eurostat, the statistical office of the European Union (EU). The moderation of all the components has contributed to this, especially energy. Specifically, energy became more expensive 8.7%, much lower from 10.8% the previous month, the cost of services went up a 3.2%, three tenths lessthe price of food, alcohol and tobacco increased by 1.6%, three tenths lessand non-energy industrial goods increased by 0.9%the same as the previous month. By country, the lower annual rates occurred in Malta (1.9%), France and Estonia (both with 2%) and Germany (2.4%), while the higher annual rates They took place in Lithuania (5.5%), Bulgaria (5.3%) and Croatia (4.2%). Regarding the rate of core inflationthat is, that which excludes the volatile prices of energy, food, alcohol and tobacco, it relaxed two tenths, to 2.4%. Last month, The European Central Bank (ECB) decided to raise interest rates by 25 basis points for the first time since September 2023, placing them at 2.25%. In addition, the organization updated its macroeconomic projections. In its reference scenario, it has revised inflation upwards for this year and next and downwards for 2028. Thus, it now expects it to be, on average, at 3% in 2026, 2.3% in 2027 and 2% in 2028 in the face of «a higher path of energy prices, which is expected to be transmitted to some extent to inflation of food, goods and services.» In the case of the underlying inflation rate, it calculates that it would be at an average 2.5% in 2026 and 2027 and 2.2% in 2028compared to its previous projection of 2.3%, 2.2% and 2.1%, respectively. The European body will hold its next monetary policy meeting on July 23.
