Eurozone inflation still well below ECB target

Underlying inflation in the eurozone rebounded in June, offering some comfort to the ECB, but still falling short of the improvement policymakers are hoping for.

With growth and price pressures easing throughout the year, ECB president Mario Draghi has already said that more policy easing will come in the near future unless inflation and growth prospects improve. Overall inflation held steady as expected at 1.2%, well short of the ECB’s target of almost 2%, but a closely watched “core” figure, excluding volatile food and energy prices, jumped to 1.2% from 1% in May.