finance
Eurozone June Inflation Forecast at 3.0% Annual Rate
Economists expect the Eurozone headline inflation rate for June to fall to 3.0% from 3.2% in May. The core rate is projected to remain at 2.6%. Data are scheduled for release on Wednesday.
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Economists forecast that the Eurozone headline inflation rate for June will decline to 3.0% year-over-year from 3.2% in May. The projection comes ahead of official data due Wednesday at 10:00 GMT. The core inflation rate is expected to hold steady at 2.6% year-over-year.
That level marks the highest reading in more than a year and reflects the initial effects of higher energy costs tied to the Iran conflict.
Italy reported that its EU-harmonised inflation rate eased to 3.1% year-over-year from 3.2% in May. France said its annual rate fell to 2.0%, below the prior month's 2.8% and the market estimate of 2.4%. Spain indicated its headline rate remained at 3.6%.
Germany is scheduled to publish its June figures Tuesday afternoon. Analysts project a decline to 2.6% from 2.7% in May. National CPI readings from German states already showed declines this month.
Oil prices have eased after the United States and Iran signed a memorandum of understanding to discuss ending the conflict. Brent crude traded near $73.80 and WTI near $70.60 in European trading Tuesday morning. Limited fighting continued over the weekend.
Germany reduced federal fuel taxes by about 17 cents per litre beginning May 1. That measure ends today and is expected to increase inflation in July. Reports from European Central Bank sources indicate reduced pressure for a July rate increase due to the projected cooling in consumer prices.
