Eurozone Inflation Rises Slightly to 2% in June

Annual inflation in the euro area is projected to reach 2.0% in June 2025, a slight increase from 1.9% in May, according to a flash estimate released by Eurostat, the statistical office of the European Union.

Breakdown by Component

Among the main components of euro area inflation:

• Services: Highest annual rate at 3.3%, up slightly from 3.2% in May.
• Food, Alcohol & Tobacco: Eased to 3.1%, down from 3.2% in the previous month.
• Non-Energy Industrial Goods: Slowed to 0.5%, compared to 0.6% in May.
• Energy Prices: Continued to decline, falling by 2.7% year-on-year, improving from a 3.6% drop in May.

Context

The modest rise in headline inflation brings the euro area closer to the European Central Bank’s target, while the continued decline in energy prices offers some relief to households and businesses facing broader cost pressures. The steady increase in service prices indicates persistent underlying inflation within the region, an element the ECB will closely monitor as it considers its monetary policy stance in the coming months.

Eurostat will publish detailed final inflation figures for June later in July.

Source: Eurostat