Eurozone Inflation Unlikely to Rise Further, Says Kapital Economics on June 17

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According to Kapital Economics analyst Jack Allen-Reynolds on June 17, eurozone inflation is unlikely to rise significantly further. May's inflation was driven by fuel prices, which should moderate in the near term. Reynolds noted that if oil and natural gas transportation through the Strait of Hormuz normalizes in coming months, energy inflation is unlikely to rise further, reducing second-round inflation risks. However, food and service price growth may accelerate in the second half of the year, he said, adding that overall inflation is expected to rise only modestly.
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