Brussels, 19 July 2023 (dpa-AFX/MIA) - Eurozone core inflation rose more than initially estimated in June, raising chances of further rate hikes beyond this month.

Core inflation that excludes energy, food, alcohol and tobacco, rose more than estimated to 5.5% from 5.3% in the previous month, final data from Eurostat showed on Wednesday.

The June rate was revised up from 5.4%.

By contrast, overall annual inflation slowed to 5.5% in June, as estimated, from 6.1% in May.

A year earlier, inflation was 8.6%. Moreover, this was the lowest since January 2022.

On a monthly basis, the harmonized index of consumer prices, or HICP, grew 0.3% in June, in line with flash estimate.

Citing high inflation, the European Central Bank has raised rates in every policy session since July last year, by a cumulative 350 basis points.

The next monetary policy announcement is due on July 27.Most of the components of the HICP registered slower growth in June, said Eurostat.

Although food, alcohol and tobacco prices posted a double-digit growth of 11.6%, this was slower than the 12.5% rise in May. The increase in non-energy industrial goods prices slowed to 5.5% from 5.8%.

Meanwhile, services cost increased 5.4% after a 5.0% gain in the previous month.

At the same time, energy prices declined significantly by 5.6% after a 1.8% drop.

Another data from Eurostat showed that construction output in the currency bloc rebounded in May on robust recovery in building construction.

Production in the construction sector grew 0.2% on a monthly basis, in contrast to the 0.6% decline in April.

Building construction posted a monthly growth of 0.4% and civil engineering output moved up 0.1%.

On a yearly basis, construction output gained 0.1%, following April's 0.4% increase.

Photo: MIA archive