Eurozone Annual Inflation Slows to 2.8%

Annual inflation across the euro area slowed to 2.8% in June 2026, down from 3.2% in May, signaling a further easing in price pressures after months of elevated inflation, according to data released by Eurostat.

The latest reading compares with an annual inflation rate of 2.0% in June 2025, indicating that while inflation has moderated from recent highs, it remains above levels recorded a year earlier.

Across the broader European Union, annual inflation also declined to 2.9% in June from 3.3% in May. In the same month last year, the bloc recorded an inflation rate of 2.3%.

Among EU member states, Sweden posted the lowest annual inflation rate at 1.0%, followed by Czechia at 1.1% and Denmark at 1.8%.

At the other end of the spectrum, Romania recorded the highest inflation rate in the European Union at 9.2%, ahead of Lithuania at 5.4% and Bulgaria at 5.2%.

Compared with May, annual inflation declined in 22 EU member states, remained unchanged in three countries, and increased in two, highlighting a broad-based slowdown in price growth across the bloc.

Despite the overall moderation, the services sector remained the largest contributor to eurozone inflation, adding 1.51 percentage points to the annual headline rate.

Energy prices were the second-largest contributor, accounting for 0.77 percentage points, followed by food, alcohol and tobacco, which added 0.29 percentage points. Non-energy industrial goods contributed a further 0.18 percentage points.

The June figures suggest that while inflationary pressures are gradually easing across the euro area, services continue to exert upward pressure on consumer prices, a trend closely watched by policymakers as they assess the outlook for monetary policy.