Inflation across the European Union (EU) fell to an annualized rate of 2.5% in June.
The headline inflation reading of 2.5% was lower than the 2.6% reading seen in May of this year and inline with the consensus forecasts of economists.
Core inflation, which excludes volatile energy, food, alcohol and tobacco prices, was unchanged in June at 2.9% and above the 2.8% that economists had expected.
The latest inflation data comes after the European Central Bank (ECB) cut interest rates by 25 basis points in June as data showed a slowdown in consumer price increases and that the continental economy is slowing.
Futures traders are betting on another two interest rate cuts of 25 basis points this year. There is only a 33% chance of an interest rate cut in July.
The category exerting the most downward pressure on inflation in June was food prices, which rose an annualized 1.4% after climbing 1.8% higher in May.
In June, the European Central Bank raised its outlook for headline inflation this year to 2.5% from 2.3% and increased its 2025 forecast to 2.2% from 2%.
The Euro currency was trading slightly lower following the latest inflation data being released, down 0.2% against the U.S. dollar and 0.05% lower against the British pound.
