Eurozone Inflation Rises

The Eurozone's consumer price index (CPI) saw a slight increase, reaching 2% year-over-year in June, as per the preliminary report released by Eurostat on Tuesday. This marks a rise from May's annual inflation rate of 1.9%.

Key Drivers Behind the Increase

The uptick in inflation was primarily fueled by the services sector, which experienced a 3.3% annual rate, up from 3.2% in the previous month. Additionally, prices for food, alcohol, and tobacco grew by 3.1%, while non-energy industrial goods saw a modest rise of 0.5%. Energy prices, although still declining, showed a less severe annual drop of 2.7% compared to May's 3.6%.

Monthly and Core Inflation Insights

On a month-on-month basis, the euro area CPI increased by 0.3%. The core inflation rate, which excludes volatile items like energy, food, alcohol, and tobacco, was recorded at 2.3% annually and 0.4% from May.