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Eurozone inflation slows to 0.2% in June | Eurozone inflation slows to 0.2% in June |
(35 minutes later) | |
The eurozone's inflation rate dipped slightly from 0.3% in May to 0.2% in June, according to official figures. | The eurozone's inflation rate dipped slightly from 0.3% in May to 0.2% in June, according to official figures. |
The reading marks the second month of a return to inflation after five months of flat or falling prices. | The reading marks the second month of a return to inflation after five months of flat or falling prices. |
The European Central Bank (ECB) has been taking steps to reflate the economies of the 19 countries that use to euro. | The European Central Bank (ECB) has been taking steps to reflate the economies of the 19 countries that use to euro. |
Other figures showed that unemployment throughout the bloc remained at 11.1% in May, the same level as in April. | Other figures showed that unemployment throughout the bloc remained at 11.1% in May, the same level as in April. |
Unemployment in Germany was the lowest of the 19, at 4.7%, while crisis-struck Greece was the highest at 25.6%. | Unemployment in Germany was the lowest of the 19, at 4.7%, while crisis-struck Greece was the highest at 25.6%. |
In March, the ECB began a €1 trillion stimulus programme to boost economic activity in the eurozone. | In March, the ECB began a €1 trillion stimulus programme to boost economic activity in the eurozone. |
The rise in prices was due in part to an increase in food and beverage costs, which were 1.2% higher. | The rise in prices was due in part to an increase in food and beverage costs, which were 1.2% higher. |
Jennifer McKeown, senior European economist economist at Capital Economics, said the inflation figure highlighted the importance of the ECB's policy support: "The decline from 0.3% to 0.2% was more modest than we had anticipated. | |
"But the rate in the region is still clearly very low by international and historical standards - eurozone inflation has now been below 0.5% for a year... and we still suspect that additional monetary policy support will be needed to meet the inflation target for the region as a whole." |
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