Eurozone inflation reaches 2.0% year over year in June, meeting ECB target.

From Morningstar: 2025-07-01 06:46:00

Consumer prices in the eurozone rose to 2.0% year over year in June, with core inflation steady at 2.3%. ECB expected to maintain rates on July 24. Services inflation increased to 3.3%, food and tobacco prices up 3.1%, while energy prices fell by 2.7%. Inflation expected to continue easing due to lower import costs and subdued domestic demand.

ECB’s next meeting on July 24 may pause the easing cycle. ECB has cut rates by 25 basis points to 2.00% on June 5, totalling eight cuts in a year. Pressure off ECB due to low inflation, equity markets may see modest upside. Analysts expect ECB to pause in July before potentially cutting rates in Q3, remaining moderately accommodative.



Read more at Morningstar: Eurozone Inflation Back at ECB Target in June