On June 30, the data released today showed that the annual rate of the reconciled CPI in France recorded 5.3% in June, lower than the 6% in the previous month, and the French inflation rate fell to the lowest level in more than a year, further indicating that the European Central Bank passed the increase. Efforts to ease price pressures are making progress.
Inflation has slowed this month in Italy, Belgium and the Netherlands, and in Spain is below the ECB’s 2 percent target.
Later in the day, a report on inflation across the euro zone is due to be released, which is also expected to show weaker headline price growth.
Still, the ECB has to take into account complex signals. German CPI data accelerated this month and a measure of underlying inflation in the euro zone is also expected to rise, which has become a key focus for policymakers.