Inflation downs slightly in Euro zone

Inflation downs slightly in Euro zone

The data published by the EU statistics institution Eurostat shows that annual inflation rate in Euro zone declined to 2.4% in June from 2.5% in May. Additionally, annual inflation rate in the 25 member states of European Union (EU) was stable at 2.4% in the mentioned period. The decline in the annual inflation rate may ease some of the central bank's concerns about the inflationary impact of higher oil prices. The core inflation rate, excluding prices of energy, food, alcohol and tobacco, rose to 1.9% in June. Eurostat stated that fuel and clothing prices had the largest downward impact on the inflation rate. Energy prices fell by 0.7% from May. Despite the rise in core inflation, Euro zone prices are not expected to soar much further this year because of weak domestic demand. Member countries which marked the highest annual rates for June are; Slovakia with 8.1%, Hungary with 7.5%, Latvia with 6.1% and Estonia with 4.4%, whereas the lowest rates were seen in Finland with -0.1%, Denmark with 0.9%, Lithuania with 1% and Sweden with 1.2%. In addition, annual inflation rate was recorded as 1.9%, 2.7% and 2.4% in Germany, France and Italy, respectively.