Eurozone inflation slowed to 2.5% in June

In June 2024, inflation in the euro area rose by 2.5% compared to the same month in 2023. Thus, the rate slowed down compared to May, when it was 2.6%. This is evidenced by preliminary data from Eurostat.

The analysts’ consensus forecast, cited by Trading Economics, also predicted a slowdown to 2.5%.

In June, core inflation, which excludes energy and food costs, remained at the level of May at 2.9%. Energy prices increased by 0.2% after rising by 0.3% in May. Experts had expected a slowdown in core inflation to 2.8%.

In June, the member states of the bloc with the highest annual inflation rates were Belgium (5.5%) and Spain (3.5%), while the lowest rates were recorded in Finland (0.6%) and Italy (0.9%). In Germany, consumer prices rose by 2.5%, and in France – by 2.5%.

As a reminder, the seasonally adjusted GDP of the euro area and the European Union in January-March 2024 increased by 0.3% compared to the previous quarter. In the fourth quarter of 2023, the eurozone economy fell by 0.1% q/q, while the EU remained stable.

The eurozone’s economic growth in quarterly terms was the highest since the third quarter of 2022.

As GMK Center reported earlier, Fitch Ratings has raised its global GDP growth forecast for 2024 by 0.3 percentage points compared to the previous forecast to 2.4%. Expectations for the eurozone were revised to 0.6% from 0.7%.