Euro Area Inflation Update

Euro area headline inflation slowed to 2.8% and core to 2.4% in June, driven by lower energy prices and the dissipation of seasonal holiday effects. J.P. Morgan expects a modest rise in core inflation through early 2027 before a long-term downward trend.

Key Takeaways

• 1.Headline inflation in the Euro area dropped to 2.8% and core inflation to 2.4% in June.
• 2.The decline in June inflation is attributed to falling crude oil prices and the unwinding of holiday-related price spikes in services.
• 3.Core inflation is expected to rise to 2.5% in late 2026 before beginning a gradual decline.

Table of Contents

• Euro area: Lower headline and core inflation in June
• Main drivers of Euro area HICP inflation
• Contributions to Euro area HICP
• Euro area inflation
• Euro area core inflation
• Euro area HICP inflation
• Euro area core HICP inflation
• Euro area food and energy HICP inflation
• Euro area weekly fuel prices
• Contribution to HICP energy price forecast

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial