Inflation down in Europe but Central Bank in no hurry to make more rate cuts

President of European Central Bank Christine Lagarde attends a press conference after a meeting of the ECB’s governing council in Frankfurt, Germany (Michael Probst/AP)

Inflation in the 20-nation eurozone crept lower to 2.5% in June, but remained stuck above the level favoured 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 on 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.