Jack Allen-Reynolds, an Analyst at Capital Economics, wrote in the report that due to high service industry inflation rates, the European Central Bank may only slowly reduce interest rates. Data released on Tuesday showed that the inflation rate in the Eurozone rose to 2.4% last month, with the closely watched service industry inflation rate climbing from 3.9% to 4.0%. Allen-Reynolds stated that this does not prevent the European Central Bank from further lowering interest rates, "but at least for now, the service industry inflation rate still seems to hover around 4%, which means that policymakers at the European Central Bank will act cautiously, preferring to cut rates in increments of 25 basis points rather than taking faster action."