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EU inflation rises to 2.3% as energy prices soften impact

21 Jul '25
1 min read
EU inflation rises to 2.3% as energy prices soften impact
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Insights

  • Euro area inflation rose to 2 per cent in June 2025 from 1.9 per cent in May, while EU inflation reached 2.3 per cent, up from 2.2 per cent, as per Eurostat.
  • Romania had the highest inflation at 5.8 per cent, and Cyprus the lowest at 0.5 per cent.
  • Inflation rose in 22 member states.
  • Non-energy industrial goods added to inflation, while energy had a dampening effect.
The euro area annual inflation rate increased to 2 per cent in June 2025, slightly up from 1.9 per cent in May, according to Eurostat, marking a decrease from the 2.5 per cent rate recorded a year earlier. Meanwhile, the European Union (EU) annual inflation reached 2.3 per cent in June, compared to 2.2 per cent in the previous month and 2.6 per cent a year ago.

Among EU Member States, the lowest annual inflation rates were observed in Cyprus (0.5 per cent), France (0.9 per cent), and Ireland (1.6 per cent). The highest rates were registered in Romania (5.8 per cent), Estonia (5.2 per cent), and both Hungary and Slovakia (4.6 per cent each), Eurostat said in a press release.

Compared with May 2025, annual inflation decreased in five member states and increased in twenty-two, highlighting a broad-based uptick in price pressures.

In terms of components, non-energy industrial goods contributed +0.13 percentage points to the annual euro area inflation rate, while energy had a dampening effect with -0.25 percentage points.

ALCHEMPro News Desk (SG)

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