Eurozone inflation lets up further in June

Brussels: Eurozone inflation let up further in June, Luxembourg-based statistics agency Eurostat reported Wednesday

Euro-area prices rose 5.5% year-over-year last month. In May that figure stood at 6.1%, while in April it was 7%.

It marks the lowest inflation rate for the eurozone since the beginning of 2022.

Supply chain dysfunction after the COVID-19 pandemic, along with Russia's war on Ukraine and the ensuing energy crisis, are a few of the key drivers of high inflation over the last year.

Will the ECB raise rates further?
Although the inflation rate is sinking overall, the 5.5% in June was higher than the 5.4% anticipated by analysts.

This suggests that the European Central Bank (ECB) could increase interest rates further to put a damper on prices. The bank is targeting 2% inflation over the medium term.
The ECB will decide on whether it will raise rates next week in a meeting.