Dutch International: Inflation Pressure in the Eurozone Eases Despite Slight Increase in Inflation Rate

Carsten Brzeski, global head of macroeconomics at ING Bank, stated that despite the Eurozone inflation rate rising to 2.0% in June, the upward pressure on prices has significantly weakened due to slowing wage growth and continued economic weakness. He mentioned that after a surprisingly low performance in May, inflation in the services sector has shown little sign of rebounding, and demand for goods remains too weak to immediately create consumer price pressure. "It is indeed somewhat unexpected that Eurozone inflation has returned to a reassuringly stable state against the backdrop of immense global economic uncertainty." However, he also warned that the risk of soaring inflation should not be ignored, especially with the potential for retaliatory tariffs from fluctuating oil prices and collapsed trade negotiations.