Euro area inflation eases to 2.8% in June, confirming estimates

• Services make largest contribution to annual inflation, followed by energy

Annual consumer inflation in the euro area eased to 2.8% in June, down from 3.2% in May, confirming preliminary estimate, according to final data released by Eurostat on Friday.

The rate was above the 2% recorded in June 2025.

Consumer prices in the 21-member currency area fell 0.1% month-on-month.

Core inflation, excluding energy, food, alcohol and tobacco, declined to 2.4% annually from 2.6% in May.

Services made the largest contribution to the annual inflation rate, adding 1.51 percentage points, followed by energy with 0.77 points, food, alcohol and tobacco with 0.29 points, and non-energy industrial goods with 0.18 points.

Services inflation eased to 3.2% from 3.5%, while energy prices rose 8.5% year-on-year, compared with a 10.8% increase in May.

Inflation in food, alcohol and tobacco slowed to 1.5%, while prices for non-energy industrial goods increased 0.7%.

Across the European Union, annual inflation fell to 2.9% in June from 3.3% in May.

The lowest inflation rates among EU members were recorded in Sweden at 1%, Czechia at 1.1% and Denmark at 1.8%.

Romania posted the highest rate at 9.2%, followed by Lithuania at 5.4% and Bulgaria at 5.2%.

Compared with May, annual inflation declined in 22 EU countries, remained unchanged in three and increased in two.