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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