June’s confirmed 2.8% annual inflation marks the slowest pace in four months, driven by cooling energy and services price growth.
Eurozone inflation slowed to 2.8% year-on-year in June, down from 3.2% in May, matching earlier estimates and reaching its lowest level since February. The decline was led by a sharp drop in energy inflation to 8.5% from 10.8%, alongside moderation in services, non-energy industrial goods, and food prices.
Core inflation, which strips out volatile energy and food costs, also eased, though specific figures were not detailed in the release. The data aligns with expectations for a gradual disinflation trend as supply chain pressures ease and demand softens.
Markets are closely watching for signals on the European Central Bank’s next policy moves, with further rate cuts potentially on the table if inflation continues to decelerate.