Latest reading: Consumer prices were up 1.5% in annual terms in June, following a 2.1% rise in the prior month....
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 2025.
Source: Macrobond.
Euro Area Inflation Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Inflation (HICP, ann. var. %, aop) | 2.6 | 8.4 | 5.5 | 2.4 | 2.1 |
| Inflation (HICP, ann. var. %, eop) | 5.0 | 9.3 | 2.9 | 2.4 | 2.0 |
| Inflation (PPI, ann. var. %, aop) | 12.2 | 32.7 | -2.1 | -4.2 | 0.3 |
Inflation ebbs more than expected in June
Latest reading: Harmonized consumer prices rose 2.8% on a year-on-year basis in June, following a 3.2% rise in the prior month. The reading surprised markets to the downside. Relative to the previous month's figures, there were reduced price pressures for food, alcohol and tobacco (+1.6% on a year-on-year basis vs +1.9% in May), energy prices (+8.7% vs +10.9% in May) and services (+3.2% vs +3.5% in May). Finally, the variation in non-energy industrial goods prices was the same as in the prior month (+0.9% in June and May). Meanwhile, core consumer prices rose 2.4% on a year-on-year basis in June, following a 2.6% increase in the prior month. Finally, harmonized consumer prices fell 0.06% in June on a month-on-month basis, following a 0.09% rise in the previous month.
Panelist insight: Commenting on the outlook, Nordea’s Anders Svendsen and Tuuli Koivu stated: “Looking ahead, we still expect second-round effects from the war in the Middle East to show up in food prices and in core goods prices. Thus, we keep a slightly upward-sloping projection for the remainder of the year, while markets have lowered implied inflation rates markedly with the drop in oil prices. Our forecast, as well as implied market expectations, points to inflation remaining above target in 2027, while the ECB staff projections show inflation returning to 2% by the middle of next year.”
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 72 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.
Latest Global Inflation News
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Serbia: Inflation ebbs in June from the prior month Latest reading: Consumer prices increased 2.7% on a year-on-year basis in June, following a 3.5% increase in the prior month.... -
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