BRUSSELS — The annual consumer inflation rate in the euro area reached 2% in June, up slightly from 1.9% in May, according to final figures released Thursday by Eurostat. The rate aligns with both the European Central Bank’s (ECB) medium-term target and market expectations.
The main driver of the inflation increase was the services sector, which rose by 3.3% year-on-year, followed by food, alcohol, and tobacco prices at 3.1%. Non-energy industrial goods saw a more modest rise of 0.5%. In contrast, energy prices continued to decline, falling 2.6% annually and helping to temper overall inflation.
Core inflation, which excludes energy and unprocessed food, increased by 2.3% year-on-year, also in line with forecasts. On a country level, Romania recorded the highest inflation at 5.8%, followed by Estonia (5.2%), Slovakia, and Hungary (both at 4.6%). The lowest rates were registered in the Greek Cypriot Administration (0.5%), France (0.9%), and Ireland (1.6%).
On a monthly basis, the consumer price index rose by 0.3% in June, compared to zero growth in May. The euro area, also known as EA20, includes the 20 EU member states that use the euro as their official currency.
