Eurozone's inflation rate fell to 2.8% in June, below market expectations

The Eurozone inflation rate fell to 2.8% in June, below the 3% forecast by a Reuters survey and down from 3.2% in May. Last month, the European Central Bank raised interest rates by 0.25 percentage points to 2.25%, marking the first rate hike since 2023. The June inflation rate has exceeded the European Central Bank's 2% medium-term target for the fourth consecutive month. Based on the levels implied by swap contracts, traders expect the European Central Bank to raise interest rates by another 0.25 percentage points before the end of this year.