Eurozone Inflation Falls More Than Expected

2026-07-01 09:06 By Joana Ferreira 1 min. read

Eurozone consumer price inflation dropped to 2.8% in June 2026, down from 3.2% in May and below market expectations of 3.0%, according to preliminary data.

This marks the lowest rate since February, before the Iran war disrupted energy supplies and pushed oil prices higher, though it remains above the European Central Bank’s 2.0% target.

Energy inflation eased significantly to 8.7% from 10.8%, while price growth also slowed for services (3.2% vs. 3.5%) and food, alcohol, and tobacco (1.6% vs. 1.9%).

Non-energy industrial goods inflation held steady at 0.9%.

The core rate, excluding energy and food, fell to 2.4% from 2.6% in May.

Among major Eurozone economies, inflation slowed in Germany (2.4% vs. 2.7%), France (2.0% vs. 2.8%), and Italy (3.1% vs. 3.2%), but remained unchanged in Spain at 3.6%.



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Eurozone Inflation Confirmed at Four-Month Low in June
Eurozone annual inflation was confirmed at 2.8% in June 2026, down from 3.2% in May and marking its lowest level since February, before the Iran war disrupted energy supplies and drove oil prices higher. While inflation continued to ease, it remained above the European Central Bank's 2.0% target. Energy inflation slowed sharply to 8.5% from 10.8%, while price growth also moderated for services, non-energy industrial goods, and food, alcohol, and tobacco. Core inflation, which excludes energy and food, eased to 2.4% from 2.6%. Among the bloc's largest economies, inflation slowed in Germany, France, Italy, and the Netherlands, while remaining unchanged at 3.6% in Spain.
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Eurozone Inflation Falls More Than Expected
Eurozone consumer price inflation dropped to 2.8% in June 2026, down from 3.2% in May and below market expectations of 3.0%, according to preliminary data. This marks the lowest rate since February, before the Iran war disrupted energy supplies and pushed oil prices higher, though it remains above the European Central Bank’s 2.0% target. Energy inflation eased significantly to 8.7% from 10.8%, while price growth also slowed for services (3.2% vs. 3.5%) and food, alcohol, and tobacco (1.6% vs. 1.9%). Non-energy industrial goods inflation held steady at 0.9%. The core rate, excluding energy and food, fell to 2.4% from 2.6% in May. Among major Eurozone economies, inflation slowed in Germany (2.4% vs. 2.7%), France (2.0% vs. 2.8%), and Italy (3.1% vs. 3.2%), but remained unchanged in Spain at 3.6%.
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