The ECB raised its deposit rate to 2.25% on June 11 to counter an oil-driven inflation spike. By the time flash data landed weeks later, euro area inflation had already fallen to 2.8%, with the very energy component that justified the hike easing in the same month.
Eurostat's flash estimate put euro area inflation at 2.8 percent in June as German business sentiment improved and the ECB prepares its next policy decision later this month. Source
