Eurozone inflation eases but ECB likely to keep interest rates on hold

Consumer prices slip to 2.5% but core rate stays high, prompting little belief in further cuts in borrowing costs

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Inflation across the eurozone slowed to 2.5% in June despite lingering pressure on households from price increases in the service sector, leaving the European Central Bank on track to keep interest rates on hold this month.

Annual inflation in consumer prices across the 20-country bloc eased from 2.6% in May, according to a flash estimate from the EU statistical agency Eurostat, matching financial market expectations.