Eurozone inflation slowed to 5.5% in June

Inflation in the Eurozone slowed down to 5.5% y/y in June 2023. Thus, inflation in Europe is slowing down for the second month in a row. This is evidenced by the previous Eurostat’s data. In May 2023, this indicator was 6.1%, and in April – 7%.

Analysts polled by Reuters on average predicted a more moderate slowdown – to 5.6%.

Meanwhile, annual core inflation, which excludes energy and food costs, accelerated to 5.4% from 5.3% in May. Energy prices decreased by 5.6% compared to a decrease of 1.8% in May 2023.

The lowest inflation rates were recorded in Luxembourg (1%), Belgium (1.6%) and Spain (1.6%), the highest – in Slovakia (11.3%) and Estonia (9%). In Germany it was 6.8%, in France – 5.3%, in Italy – 6.7%.

As GMK Center reported earlier, the rates of inflation in the eurozone in May 2023, slowed down to 6.1% compared to 7% in April 2023. At the same time, annual core inflation, which excludes energy and food costs, slowed to 5.3%.

In the first quarter of 2023, the GDP of the Eurozone increased by 0.1% q/q. The economy of the European Union in January-March 2023 grew by 0.3% q/q. In annual terms, the GDP of the Eurozone and the EU grew by 1.3%. France and Italy recovered from the negative indicators recorded in the last months of 2022. At the same time, the German economy is slowing down.