Inflation in Eurozone has fallen again, but is unlikely to lower food and service prices in short term.

The rate was 5.5% in June, down from 6.1% in May and a continuation of the downward trend seen in recent months.

Despite the steady decline, the cost of everyday products remains high in Europe, compared to other Western economies. It is driven by the high cost of energy and labor that has come as a result of the war in Ukraine.

Core inflation, which does not include food and fuel prices, remains a concern for Eurozone finance chiefs, which has increased slightly from 5.3 to 5.4%.

This signals that the European Central Bank will continue its policy of increasing interest rates, as it continues the battle to achieve the objective of an inflation of 2 percent.

The ECB has raised rates 8 times in a row from minus 0.5 to 3.5 percent and a further increase is expected to happen.