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Eurozone inflation rose slightly in June, ahead of the European Central Bank’s (ECB) next policy-setting meeting later this month.

The consumer price index (CPI) revealed that consumer prices rose by 2.0% annually last month, according to statistics body Eurostat, matching the ECB’s target.

It was in line with expectations, but did marginally accelerate from the 1.9% recorded in May, which was a eight-month low. However, it is much lower than the UK’s inflation rate of 3.6%.

Month-on-month, the reading rose 0.3%, after coming in flat last month.

Meanwhile core inflation, which strips out more volatile items like food and fuel, climbed 2.3% in the 12 months to June, matching the level seen the previous month. This highlights persistent underlying price pressures, particularly in services.

Read more: UK jobs market continues to cool as pay growth slows

Services inflation, a key focus for the ECB, rose to 3.3% in June from 3.2% in May, and jumped by 0.7% month-on-month,

These final figures confirmed the preliminary readings seen at the start of the month.

The lowest annual rates were registered in Cyprus (0.5%), France (0.9%) and Ireland (1.6%). The highest annual rates were recorded in Romania (5.8%), Estonia (5.2%), Hungary and Slovakia (both 4.6%).

Food, alcohol and tobacco prices were up 3.1% over the last year, while services prices were 3.3% higher. Industrial goods inflation was 0.5%, while energy prices were 2.6% lower than a year ago.

It comes as the ECB cut interest rates last month for the eighth time in a year but indicated it would likely pause at its next meeting thanks to trade uncertainty.

US president Donald Trump threatened a 30% tariff on EU imports over the weekend, a more severe hit than Europe had anticipated.

Read more: Jobs data increases odds on Bank of England interest rate cut

Earlier this month ECB president Christine Lagarde reaffirmed the central bank’s commitment to price stability.

“Much of the policy challenge over the last few years has involved stabilising inflation while facing fundamental uncertainty about the economy."

Inflation, she noted, had peaked higher than in previous soft-landing episodes, but also decelerated more rapidly. Growth, while muted, remained within the historical range, and the labour market proved "exceptionally benign".

“It will take time for us to gather sufficient data to be certain that the risks of above-target inflation have passed,” she said. “Our work is not done, and we need to remain vigilant.”

The euro was down around 0.2% against the pound on Thursday, trading at 86.52 pence. Sterling was strengthened by weak UK jobs data, which adds pressure on the Bank of England to reduce interest rates.