Eurozone inflation confirmed at 2.8% as energy price growth cools

(Sharecast News) - Inflation across the eurozone slowed as initially expected in June, according to unrevised figures from Eurostat on Friday, with price growth hitting a three-month low as a spike in energy costs eased. The annual change in the harmonised consumer price index for the single-currency region was 2.8% last month, final estimates showed, in line with the preliminary reading released two weeks ago and down from 3.2% in May.

That was the lowest rate of inflation since March at the onset of the Iran war, before a surge in oil prices as a result of supply disruptions along the Strait of Hormuz.

Energy price inflation slowed to 8.5% from 10.8%, while price growth also slowed across all other major categories. Food, alcohol and tobacco prices, in particular, were up 1.5% on last year, down from 1.9% growth in May.

Excluding energy, food, alcohol and tobacco prices - viewed as the more volatile items - core inflation eased to just 2.4% in June from 2.6% the month before.