Eurozone CPI Holds at 2.8% as Energy Costs Ease Further

Eurozone headline inflation was confirmed at 2.8% in June, matching the preliminary estimate, as energy prices fell 1.8% month-on-month. The monthly print came in at -0.1%, the first negative reading since January, largely reflecting the drop in energy costs.

Food price inflation slowed to 1.5% from 1.9% in May, while services inflation eased to 3.2% from 3.5%. Core inflation, which excludes energy and food, also softened, dipping to 2.8% from 2.9% previously.

The data keeps the European Central Bank on a steady course. With inflation edging lower but still above the 2% target, policymakers have room to wait through the summer before deciding on the next rate move. The ECB's next policy meeting is scheduled for September.