Europe: Inflation is down; European Central Bank is in no hurry to make more rate cuts

Inflation in the 20-nation eurozone crept lower to 2.5 per cent in June, but remained stuck above the level favoured by the European Central Bank, which is in no hurry to add more rate cuts after a first tentative reduction in its benchmark rate.

The figure released Tuesday was down from 2.6 per cent in May, welcome news as inflation continues to fall from its peak of 10.6 per cent that robbed consumers of spending power and mired the European economy in months of near-zero growth.

But key indicators Tuesday remained at levels that suggest inflation may remain stuck between 2 per cent and 3 per cent for a while yet. Inflation in services prices ran at 4.