Eurozone inflation eases to 2.8% in June, tempering ECB rate hike expectations

Euro area annual inflation is estimated to have fallen to 2.8% in June 2026, down from 3.2% in May, according to a flash estimate from Eurostat. This softer-than-expected inflation, particularly driven by a slowdown in energy prices, has led to a depreciation of the euro against major currencies and cooled market expectations for further interest rate hikes from the European Central Bank.