Brussels: Annual consumer inflation in the euro area eased to 2.8% in June, down from 3.2% in May, confirming preliminary estimates, according to final data released by Eurostat on Friday. This decrease marks a continued trend from the 2% inflation rate recorded in June 2025. The report highlights a 0.1% month-on-month decline in consumer prices across the 21-member currency area. According to Anadolu Agency, core inflation, which excludes volatile categories such as energy, food, alcohol, and tobacco, fell to 2.4% annually from 2.6% in May. The services sector made the largest contribution to the annual inflation rate, adding 1.51 percentage points. Energy followed with a contribution of 0.77 points, while food, alcohol, and tobacco added 0.29 points, and non-energy industrial goods contributed 0.18 points. The data showed a decrease in services inflation, which eased to 3.2% from 3.5%. On the other hand, energy prices saw a rise of 8.5% year-on-year, compared with a 10.8% increase in May. Inflation in the categories of food, alcohol, and tobacco slowed to 1.5%, while prices for non-energy industrial goods increased by 0.7%. Across the broader 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%. Meanwhile, 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.
Euro Area Inflation Drops to 2.8% in June, Services Lead the Decline
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