Inflation in the eurozone slowed to 2.8% in June

Annual inflation in the eurozone slowed to 2.8% in June 2026, down from 3.2% in May. This is according to a preliminary estimate by Eurostat.

The figure was significantly lower than the 3% forecast by experts.

Energy prices rose by 8.7% year-on-year last month, compared with 10.8% in May, prices in the services sector rose by 3.2% (3.5% in May), for food, alcohol and tobacco by 1.6% (1.9% in May), and for non-energy industrial goods by 0.9% (the same as in May).

Core inflation, which excludes food and energy prices, rose by 2.4% year-on-year in June (2.6% in the previous month).

Among the region’s largest economies, annual inflation in Germany stood at 2.4% in June, in France at 2%, in Italy at 3.1% and in Spain at 3.6%.

It should be noted that on 11 June, the European Central Bank raised its key policy rate for the first time in almost three years.

At the same time, the regulator raised its inflation forecast for 2026 to 3%, compared with 2.6% in its previous review in March. The forecast for 2027 stands at 2.3%, and for 2028 at 2%.

The ECB also lowered its forecast for eurozone economic growth this year by 0.1 percentage points, to 0.8%.

As reported by GMK Center, EU GDP grew by 1.6% year-on-year in 2025, whilst the eurozone economy expanded by 1.5%. In the fourth quarter of 2025, GDP rose by 1.4% year-on-year in the EU and by 1.3% year-on-year in the eurozone.