Eurozone inflation rate fell to 2.8% in June, lower than market expectations

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