Euro zone inflation hit 5.5% in June, according to preliminary data, coming in lower than analyst expectations — but core inflation, which excludes energy and food, remains stubbornly high and rose to 5.4%. Core inflation had eased to 5.3% in May, from 5.6% in April. Some media reports attributed the sticky core rate to an increase in German rail ticket costs, after the country this time last year offered a discounted pass. The European Central Bank also revised its headline and core inflation expectations for the next couple of years during its interest rate meeting. "Wage-price spiral, which are price increases caused by higher inflation, remains a clear burden for core-inflation.

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Persons: Bert Colijn, Christine Lagarde, it's, Clémence Dachicourt, Lagarde Organizations: Central, ING, U.S . Federal Reserve, European Central Bank, Morningstar Investment Management Locations: European, Sintra, Portugal