Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts

Inflation is down in Europe. But the European Central Bank is in no hurry to make more rate cuts

Inflation is on the way down in Europe

ByDAVID MCHUGH AP business writer

July 2, 2024, 5:08 AM

FRANKFURT, Germany -- Inflation in the 20-nation eurozone crept lower to 2.5% in June, but remained stuck above the level favored by the European Central Bank, which is in no hurry to add more rate cuts after a first tentative reduction in its benchmark rate.

The figure released Tuesday was down from 2.6% in May, welcome news as inflation continues to fall from its peak of 10.6% that robbed consumers of spending power and mired the European economy in months of near-zero growth.

But key indicators Tuesday remained at levels that suggest inflation may remain stuck between 2% and 3% for a while yet. Inflation in services prices ran at 4.1%, unchanged from the month before.