Eurozone Inflation Likely Slowed in June, Analyst Say

        By Jon Sindreu
        LONDON--Economists expect official data due this coming week to show inflation in the eurozone slowed slightly in June.
        According to median forecasts by economists polled by The Wall Street Journal, consumer prices likely rose an annual 0.2% during the month. This would be a slower rate than May's 0.3% increase and still much beneath the European Central Bank's inflation target of below, but close to, 2%.
        Still, a second consecutive month of price growth is likely to ward off fears of widespread deflation in the 19-nation bloc, after drops in the global price of oil led inflation to turn negative at the end of last year. A barrage of other indicators set to be released during the week is also expected to suggest the eurozone's economy accelerated in the second quarter of the year.
        However, the Greek crisis still looms heavily over the eurozone's economic prospects. Investors will closely monitor this weekend's meeting between Greek officials and its international creditors. Failing to strike a deal would drive Athens towards defaulting on its debt payments due June 30.
        "If the government does not accept the conditions that creditors attach to new support loans, Greece may be broke before the weekend is over," said Holger Schmieding, economist at Berenberg, who nonetheless pointed out "the risk of contagion looks much smaller than it did three years ago."
        (Figures in parentheses refer to number of economists surveyed. p = preliminary)
        Write to Jon Sindreu at jon.sindreu@wsj.com
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        June 26, 2015 12:40 ET (16:40 GMT)\

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