Eurozone inflation falls to 17-month low in June

By Tuba Ongun

ANKARA (AA) – The euro area annual consumer inflation rate dropped to a 17-month low in June, mainly led by declining energy prices, according to flash estimates released on Wednesday.

Consumer prices rose 5.5% year-on-year in June, the slowest hike since January 2022, according to the EU's statistical authority.

The headline inflation slowed from 6.1% in May 2023 and 8.6% in June 2022.

Energy prices fell 5.6% from a year ago in June after decreasing 1.8% in May, Eurostat data showed.

Prices for food, alcohol and tobacco rose 11.6% from the prior year in June, easing from 12.5% in May.

In the EU, annual inflation slowed to 6.4% in June from 7.1% in May.

The lowest annual rates were seen in Luxembourg (1.0%), Belgium and Spain (both 1.6%), while the highest rates were in Hungary (19.9%), Slovakia (11.3%) and the Czech Republic (11.2%).

On a monthly basis, the euro area consumer price index increased 0.3% in June.

Energy prices in the single currency area fell 0.7% month-on-month in June, while food prices went up by 0.3%.