FX.co ★ Eurozone Inflation Falls More Than Expected

Eurozone consumer price inflation eased to 2.8% in June 2026, down from 3.2% in May and below market expectations of 3.0%, according to preliminary data. This is the lowest rate since February, before the war in Iran disrupted energy supplies and pushed oil prices higher, though it still exceeds the European Central Bank’s 2.0% target. Energy inflation slowed markedly to 8.7% from 10.8%, while price growth also moderated for services (3.2% vs. 3.5%) and for food, alcohol, and tobacco (1.6% vs. 1.9%). Inflation for non-energy industrial goods was unchanged at 0.9%. The core inflation rate, which excludes energy and food, declined to 2.4% from 2.6% in May. Among the largest Eurozone economies, inflation eased in Germany (2.4% vs. 2.7%), France (2.0% vs. 2.8%), and Italy (3.1% vs. 3.2%), while remaining steady in Spain at 3.6%.