The consumer price inflation rate in the Euro Area was confirmed at 5.5 percent in June 2023, the lowest level since January 2022, mainly due to a decline in energy prices. However, the core rate, which excludes volatile items such as food and energy, picked up to 5.5 percent, above a preliminary estimate of 5.4%, remaining close to a recent peak of 5.7 percent and supporting the view that ECB policymakers are likely to continue raising rates in the upcoming months. Energy prices tumbled 5.6 percent (vs -1.8 percent in May), while prices rose at a softer pace for both food, alcohol & tobacco (11.6 percent vs 12.5 percent) and non-energy industrial goods (5.5 percent vs 5.8 percent). On the other hand, services inflation picked up to 5.4 percent from 5.0 percent. On a monthly basis, consumer prices advanced 0.3 percent in June.
