July 10 (Reuters) - Czech price growth slowed more than expected in June, data showed on Wednesday, with headline inflation falling back to the central bank's target as policymakers are set to debate whether to scale back the pace of interest rate cuts.
Inflation eased to 2.0% year-on-year in June from 2.6% in the previous month, below a Reuters poll forecast of 2.5%. On the month, consumer prices fell 0.3%.
The statistics office said price growth slowed in most consumer basket segments.
Price growth in closely watched services reached 4.9% year-on-year, the lowest rise since August 2021, when an inflation surge was starting to build that caused policymakers to lift rates to decades-old highs between 2021-2022.
Since last December the Czech National Bank (CNB) has been undoing some of that tightening, cutting the main interest rate by 225 basis points to 4.75%.
The bank, which targets inflation at 2% with a tolerance band of 1 percentage point around that, delivered a fourth straight 50-basis-point reduction last month, but signalled a likely slowdown to the pace of easing. (Reporting by Jason Hovet in Prague; Editing by Jan Harvey)
