based on materials from the site - By Cryptopolitan_News

Inflation in Germany unexpectedly slowed down in June, aligning with the European Central Bank's target of 2% for the first time in almost a year.

According to data published by Destatis on Monday, June 30, consumer prices rose by 2% compared to last year, down from 2.1% in May and below economists' expectations of a slight increase to 2.2%.
The ECB has cut its deposit rate eight times since June 2024 to support growth, but now that inflation has reached the target, officials are expected to pause further rate cuts at their upcoming meeting in July.

Luis de Guindos reveals 'hard uncertainty' regarding Europe's prospects
After the data presented above, June was described as ambiguous for the largest economies in the eurozone. Interestingly, inflation rose in France and Spain but remained unchanged in Italy.
Moreover, the figures are unlikely to convince ECB officials to revise their assessment that the 2% target will be achieved sustainably this year. Data for the 20-country bloc will be released soon, and analysts expect it to be 2% — slightly better than 1.9% in May.

Many politicians, far from upward price pressures, are more concerned that the region's sluggish economy will pull inflation down.

Luis de Guindos Huardo, Vice President of the European Central Bank (ECB), commented on the discussion topic. He stated that growth is likely to stop in the second and third quarters.

In Madrid, Huardo expressed concern about the 'hard uncertainty' regarding Europe's prospects. He noted that Europe's future will largely depend on trade negotiations between the European Union and the United States. These negotiations are expected to conclude next week.

Although such uncertainty hints at slower economic growth, the inflation forecast is 'less ambiguous,' said Gabriel Makhlouf, Governor of the Central Bank of Ireland. He added that this carries potential risks for both growth and decline.

However, based on Makhlouf's arguments, the overall inflation forecast for the eurozone looks positive in the short and medium term. He also stated that there are signs that inflation is stabilizing around the medium-term target level of 2% set by the Governing Council.

Meanwhile, in Germany, the prospects for the continent's largest economy have improved as the new government increases spending on defense and infrastructure.

After many years of meager growth, forecasters predict that spending will boost economic growth, especially in 2026 and 2027.

ECB officials assert that inflation will reach its target by 2025.
Unlike Germany, inflation in Italy unexpectedly remained stable in June, staying below the European Central Bank's target of 2% for the second month.
The National Statistical Institute reported that consumer prices rose by 1.7% compared to last year. This is comparable to a 1.7% increase in May. Analysis from reliable sources in an economist survey predicted a growth of 1.8%.

Despite data showing growth in France and Spain, ECB officials are confident that inflation will reach its target by 2025. Officials have already lowered interest rates eight times over the past year, and markets do not rule out further easing, even as the economy of the 20 countries struggles with the aftermath of global tariff disruptions.

On the other hand, Eurostat is expected to release inflation data for the entire eurozone. In this context, economists expect a slight increase to 2%.

In particular, prices for food, housing, water, and electricity have risen in Italy. Fabio Panetta, head of the Bank of Italy, stated that inflation is almost under control, but monetary policy is being managed in an environment of increasing uncertainty.

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