LUXEMBOURG / EuroWire / – Euro area annual inflation eased to an estimated 2.8% in June 2026 from 3.2% in May. Eurostat released the flash estimate on July 1. The statistical office of the European Union measures the rate through the harmonised index of consumer prices. The data showed a 0.1% monthly decline in the all-items index. The HICP helps compare consumer price changes across the euro area.
The result kept euro area inflation above the European Central Bank’s 2% medium-term target. It also brought the headline rate back below 3% after the May increase. The ECB raised its three key interest rates by 25 basis points on June 11. Its deposit facility rate moved to 2.25% on June 17. The main refinancing rate reached 2.40%, and the marginal lending rate rose to 2.65%.
Eurostat said the flash estimate comes at the end of each reference month. The full set of harmonised indices for June will come on July 17. That release covers the euro area, the European Union and member states. The euro area has 21 members in 2026 after Bulgaria joined on Jan. 1. Data from January onward use the EA21 composition, while earlier months use EA20.
Energy and services ease
Energy remained the fastest-growing major component in June. Its annual rate slowed to 8.7% from 10.8% in May. Services inflation eased to 3.2% from 3.5%. Food, alcohol and tobacco slowed to 1.6% from 1.9%. Non-energy industrial goods held at 0.9%. That group had the lowest annual rate among the main components. Services carried the largest 2026 weight among the groups.
Underlying measures also moved lower in June. Inflation excluding energy stood at 2.2%, down from 2.4% in May. Core inflation, excluding energy, food, alcohol and tobacco, fell to 2.4% from 2.6%. Monthly prices rose 0.1% on the index that excludes energy. They rose 0.2% on the index that excludes energy, food, alcohol and tobacco. The all-items monthly rate fell below zero.
Member states show mixed rates
Among major euro area economies, Germany recorded an estimated annual rate of 2.4% in June, down from 2.7% in May. France fell to 2.0% from 2.8%. Italy eased to 3.1% from 3.2%. Spain stayed at 3.6%. Belgium dropped to 3.0% from 4.0%. Bulgaria showed 5.3%, down from 6.3% in its first year inside the currency bloc. Ireland eased to 3.2% from 3.5%.
Several smaller economies still recorded higher rates. Lithuania had an estimated 5.5%, the highest listed figure. Croatia stood at 4.2%, Cyprus at 4.0%, Greece at 3.9% and Luxembourg at 3.8%. Malta posted 1.9%, below the 2% target. Finland stood at 2.7%, while Slovakia recorded 3.5%. The Netherlands did not provide data in time. Its figures entered only the European aggregate calculation.