Global Economy
Eurozone Inflation Slows to 2.8% in June, Eurostat Shows
Eurostat released data on July 17 indicating that euro‑area inflation eased to 2.8% year‑over‑year in June, down from 3.2% in May. The deceleration was driven primarily by a sharp slowdown in energy price growth, although services continue to be the main source of price pressure. The trend was broadly consistent across the EU, with most member states seeing a monthly slowdown, while Sweden recorded the lowest inflation rate and Romania the highest.
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Eurozone inflation eases to 2.8% in June
Eurostat reported that the annual inflation rate for the euro area fell to 2.8% in June, down from 3.2% in May. The decline was largely driven by a sharp slowdown in the growth of energy prices.
On a month‑to‑month basis, price growth fell in 22 of the 27 EU member states, remained unchanged in three countries, and increased only in two.
Despite the overall slowdown, the services sector continues to be the main engine of price pressure, adding 1.51 percentage points to the annual inflation rate. This outpaces the contribution from energy (0.77 pt), food, and non‑energy industrial goods (0.18 pt).
Across the whole European Union, annual inflation stood at 2.9% in June, compared with 3.3% the month before.
Sweden posted the lowest inflation at 1.0%, followed by the Czech Republic (1.1%) and Denmark (1.8%). Romania recorded the highest rate at 9.2%, with Lithuania (5.4%) and Bulgaria (5.2%) trailing behind.