According to Monday data released by the European Statistical Agency (Eurostat), annual inflation eased from 3.2% in May to 2.8% in June. Inflation rates have decreased in 22 of the 27 member states of the European Union. In the Eurozone's four largest economies, inflation stands at 2.4% in Germany, 2% in France, 3% in Italy, and 3.6% in Spain.
Recent developments in the Middle East are making the inflation outlook more unpredictable. The ECB is likely to keep interest rates unchanged at this week's meeting, but a potential September rate hike is growing if energy prices continue to rise.
