Inflation in the euro zone slightly attracted inflation in June.
The inflation rate had increased to 2.0 percent in the year, the Statistikamt Eurostat announced on Tuesday in Luxembourg, according to an initial estimate. In May the inflation rate had fallen to 1.9 percent. On average, economists had expected exactly the slight increase.
Inflation in the euro zone thus coincides with the medium -term inflation goal of the European Central Bank (ECB) of two percent. However, the core rate of inflation, in which certain components that are particularly susceptible to fluctuations are deducted, is higher with 2.3 percent.
In view of the economy and only at the beginning of June, the ECB had reduced the deposit interest for the eighth time at the beginning of June – by 0.25 percentage points to 2.0 percent. For the next ECB decision on July 24th, most economists expect an interest break.
The uncertainty about the consequences of trade disputes with the USA should also play a role. Because: As is going on with inflation, US President Donald Trump’s aggressive customs policy has become more uncertain. Customs could hit the prices of industrial goods and also hit consumers.