Euro area annual inflation eased to 2.8% in June 2026, down from 3.2% in May, according to Eurostat, the European Union’s statistical office. Across the broader EU, the rate also fell, coming in at 2.9% compared with 3.3% the previous month.

Both figures remain well above their year-earlier levels. The euro area rate stood at 2.0% in June 2025, while the EU figure was 2.3% – meaning prices across the bloc are still rising meaningfully faster than they were twelve months ago.

Services remained the single largest contributor to euro area inflation in June, adding 1.51 percentage points to the headline rate. Energy contributed 0.77 percentage points, food, alcohol and tobacco added 0.29 percentage points and non-energy industrial goods accounted for a further 0.18 percentage points.

The divergence across Member States continues to be wide. Sweden recorded the lowest annual rate at 1.0%, followed by Czechia at 1.1% and Denmark at 1.8%. Romania sat at the other extreme with a rate of 9.2%, ahead of Lithuania at 5.4% and Bulgaria at 5.2%. Overall, twenty-two Member States saw annual inflation fall in June compared with May, three held steady, and two recorded a rise.

Malta’s annual rate came in at 2.0% in June, down from 2.1% in May, with a monthly increase of 1.1%.

On a monthly basis, the euro area price level slipped 0.1% in June. Energy prices dropped 1.8% month-on-month and unprocessed food fell 1.0%, partially offsetting a 0.5% monthly rise in services prices.

Bulgaria joined the euro area on 1 January 2026, bringing membership to 21 countries. Eurostat notes that aggregate data series account for this change using a chain index formula, with figures up to December 2025 reflecting the previous 20-member composition.

The June reading matches the flash estimate Eurostat published on 1 July 2026. The next flash estimate, covering July 2026 data, is scheduled for release on 31 July 2026.