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Statements from officials at the European Central Bank indicated that the Eurozone economy has not fully returned to its pre-Iranian war state, despite the decline in oil prices. Nonetheless, inflationary pressures remain strong, with energy and food prices continuing to rise, and inflation reaching around 3.2% in May. They also noted that ongoing challenges include the lingering effects of the war, a heatwave, and the El Niño phenomenon, which could lead to a tightening of monetary policy despite expectations of a period of stability in interest rates.
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