The final data released by the European Statistics Office on Thursday confirmed that the inflation rate in the Eurozone rose to record an annual growth of 2% in June 2025, aligning with the European Central Bank's target, up from the lowest level in 8 months recorded in May at 1.9%.
Details of the Indicators: Service inflation accelerated to 3.3%, up from 3.2% in May, which was the lowest level in three years at that time. The decline in energy prices slowed to 2.6%, compared to 3.6% in the previous month. Conversely, the inflation rate in the following sectors decreased:
Industrial goods excluding energy: 0.5% compared to 0.6% in May. Food, alcoholic beverages, and tobacco: 3.1% compared to 3.2%. As for core inflation—which excludes energy prices and food, alcoholic beverages, and tobacco—it remained stable at 2.3%, the lowest level recorded for core inflation in the Eurozone since January 2022.
The Consumer Price Index measures the change in prices of goods consumed by individuals, and consumer prices are a significant measure to determine changes in buying trends and inflation rates in the Eurozone, which have strong implications for the European Central Bank's policy actions regarding the monetary policy path.
