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Euro zone June inflation unchanged at low levels as expected

Euro zone inflation stayed low as expected in what the European Central Bank calls the "danger zone" in June as falling prices of food and phone calls offset more expensive tobacco and restaurants, data showed on Thursday. Consumer prices in the 18 countries using the euro rose 0.1 percent on the month in June for a 0.5 percent year-on-year gain -- the same annual inflation rate as in May, data from the European Union's statistics office Eurostat showed. The annual rate is well below the ECB's inflation target of close to, but below 2 percent. The central bank believes that price growth slower than 1 percent is a "danger zone" because of the risk of deflation.

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