The European Statistics Office (Eurostat) has announced the inflation data of the Eurozone for June. Accordingly, annual inflation declined from 6.1 percent to 5.5 percent, which was recorded as a decrease in line with expectations. The increase in the general level of monthly prices was realized as 0.3 percent, in line with the forecasts.
However, in core inflation unexpected a situation occurred. Core inflation rose to 5.5 percent in June, against the expectations of 5.4 percent. In the previous month, May, the level was measured as 5.3 percent. This surprising rise strengthened the expectations that the European Central Bank will continue to increase interest rates at its meeting next week.
The European Central Bank had taken tight monetary policy steps against price increases and stated that it would continue to make policy decisions by closely monitoring the economic situation. High core inflation may have an impact on the decision-making process on interest rate hikes. The decisions and explanations to be taken at the next meeting will be watched with great attention by the markets and economy followers.
