The Eurozone Harmonized Index of Consumer Prices (HICP) increased by 2.5% year-on-year in June, slightly slower than the 2.6% growth reported in May, according to data released by Eurostat on Tuesday. Market expectations had anticipated a 2.5% rise for the same period.

Core HICP, which excludes volatile food and energy prices, also grew by 2.9% year-on-year in June, maintaining the same pace as in May and surpassing the forecasted 2.8%.

Month-on-month, the Eurozone's HICP edged up by 0.2% in June, matching the increase seen in May. Core HICP inflation for the same period was 0.3% month-on-month, down from 0.4% in the previous month.

The European Central Bank (ECB) targets an inflation rate of 2.0%. Data on Eurozone HICP inflation significantly influence market expectations regarding the ECB's monetary policy decisions, including potential interest rate adjustments.

In June, services are anticipated to show the highest annual inflation rate in the euro area at 4.1%, unchanged from May. This is followed by food, alcohol, and tobacco with a rate of 2.5%, slightly down from 2.6% in May. Non-energy industrial goods are expected to maintain stability with a 0.7% increase, consistent with May's figures. Energy prices, however, are projected to see a slight decrease to 0.2% from 0.3% in May.