EUROPEAN INFLATION slowed in June and industrial production increased less than economists forecast in May as the economy struggled to gather strength.

Consumer prices in the 16- member euro zone rose 1.4 per cent from a year ago after increasing 1.6 per cent in May, the European Union statistics office in Luxembourg said yesterday. Industrial production rose 0.9 per cent in May from the previous month.

European Central Bank president Jean-Claude Trichet on July 8th forecast the economy would increase at a “moderate” pace and said inflation might accelerate “later in the year”. – (Bloomberg)