Eurozone Inflation Rises To 2 Percent In June 2025

In June 2025, the eurozone annual inflation rate rose slightly to 2.0%, up from 1.9% in May, aligning with the European Central Bank's target. Within the broader European Union, inflation increased to 2.3%, with the highest rates recorded in Romania (5.8%) and Estonia (5.2%), while Cyprus and France had the lowest rates. The main drivers of inflation in the euro area were services, which rose by 3.3%, followed by food, alcohol, tobacco, and non-energy industrial goods, whereas energy prices continued to decline. Luxembourg experienced a higher inflation rate of 2.4% in June, surpassing the eurozone average, primarily due to increased fuel and food prices. Despite these inflationary pressures, European stock markets showed positive performance, with markets in Paris, Frankfurt, and London rising, while some companies like Stellantis adjusted strategies in response to economic conditions. The European Central Bank remains vigilant on core inflation and wage growth, with further policy decisions anticipated.