The eurozone’s annual inflation rate fell by more than expected in June to 5.5% amid sharp falls in the cost of energy, highlighting an increasingly stark divide with stubbornly high price growth in the UK.
Consumer prices across the eurozone rose by 5.5% in the year to June, down from an annual rate of 6.1% in May and below forecasts for a reading of 5.6%, according to Eurostat.
The EU’s statistical agency said energy contributed the most to the falling headline rate, after a 5.6% fall in the average price in the year to June, compared with an annual decline of 1.8% in May.
Food, alcohol and tobacco inflation slowed from 12.5% in May but remained in double digits at 11.7% as households continued to come under pressure from the rising cost of the weekly shop.
