Eurostat reports the first monthly decline in prices this year in the euro area

Annual inflation in the euro area decreased in June to 2.8%, down from 3.2% in May, according to Eurostat estimates, suggesting that price pressures, especially those generated by the war in the Middle East, are beginning to ease.

This is the first monthly decrease in prices this year, with a reduction of 0.1%. The core inflation rate, which excludes volatile energy and food prices, fell from 2.6% to 2.4%. Although energy remains the main driver of inflation, its influence is decreasing, with a rate of 8.7% in June, compared to 10.8% in May. The largest economies in the euro area, including Germany and France, reported significant decreases in inflation, mainly due to falling energy prices. In this context, the ECB may be more reluctant to adopt restrictive monetary measures. Financial markets reflect this trend, with the euro falling below 1.14 dollars and bank stocks recording losses. This situation gives the ECB reasons to wait before taking new measures.