Final June CPI data confirms a slight easing in euro area inflation, with core prices falling to their lowest level since early 2022.
Euro area inflation slowed to 2.8% year-over-year in June, matching preliminary estimates and down from 3.2% in May. Core inflation also eased to 2.4%, a decline from 2.6% in the prior month, driven by lower energy and food price pressures.
Headline inflation saw a monthly decline of 0.1%, primarily due to a 1.8% drop in energy prices. Annual energy inflation fell to 8.5% from 10.8% in May, while food price inflation decreased to 1.5% from 1.9%. Services inflation also softened to 3.2% from 3.5%.
The data reinforces expectations that the European Central Bank may pause further policy tightening over the summer. However, risks remain, including potential energy price spikes from geopolitical tensions that could reignite inflationary pressures.