Latest reading: Inflation edged down to 1.9% in June, which followed May’s 2.1%. June’s reading represented the weakest inflation rate...
Inflation in Euro Area
The Euro area faced generally low inflation rates over the last decade, often below 2%, reflecting the region's slow economic growth and low inflation expectations. That said, the picture has changed notably since the pandemic: Inflation has exceeded the European Central Bank's 2% from 2021 through 2024, due to the initial rebound in economic activity, global supply pressures, a rise in protectionism and the reduction of Russian gas flows to the bloc.
In the year 2024, the inflation in Euro Area was 2.36%, compared to 0.43% in 2014 and 5.42% in 2023. It averaged 2.21% over the last decade. For more inflation information, visit our dedicated page.
Euro Area Inflation Chart
Note: This chart displays Inflation (HICP, ann. var. %, aop) for Euro Area from 2014 to 2024.
Source: Macrobond.
Euro Area Inflation Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Inflation (HICP, ann. var. %, aop) | 0.3 | 2.6 | 8.4 | 5.4 | 2.4 |
| Inflation (HICP, ann. var. %, eop) | -0.3 | 5.0 | 9.2 | 2.9 | 2.4 |
| Inflation (PPI, ann. var. %, aop) | -2.6 | 12.2 | 32.7 | -2.1 | -4.2 |
Harmonized inflation rises in June
Latest reading: Harmonized inflation came in at the ECB’s target of 2.0% in June, which was up from May’s 1.9%. Looking at the details of the release, services prices rose at a quicker pace in June compared to the previous month. Moreover, energy prices fell at a softer rate. The trend was unchanged, with annual average harmonized inflation coming in at May's 2.2% in June. Meanwhile, core inflation was stable, coming in at May's 2.3% in June. Lastly, harmonized consumer prices increased 0.28% from the previous month in June, contrasting May's 0.05% drop.
Outlook: Our panel see inflation around target throughout the remainder of the year, kept in check by downbeat oil prices.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects European inflation projections for the next ten years from a panel of 69 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for European inflation.
Download one of our sample reports to visualize what a Consensus Forecast is and see our European inflation projections.
Want to get access to the full dataset of European inflation forecasts? Send an email to info@focus-economics.com.
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