Inflation steady at 2% ahead of ECB meeting next week

Ireland’s rate of inflation, at 1.6%, was among the lowest in the eurozone

The European Central Bank in Frankfurt. The data comes ahead of a two-day meeting of the ECB’s Governing Council next week where interest rates will be discussed.

Inflation across the eurozone remained steady at 2% during June, new data from Eurostat shows, ahead of a meeting of the European Central Bank next week to discuss interest rates.

According to the data, inflation was up marginally from 1.9% recorded in May. Ireland’s rate of inflation, 1.6%, was among the lowest in the eurozone just behind the 0.5% recorded in Cyprus and the 0.9% recorded in France.

The highest annual rates in the eurozone were recorded in Estonia at 5.2%, Slovakia at 4.6%, and Croatia at 4.4%.

The inflation rate in the broader European Union stood at 2.3% last month.

In June 2025, the highest contribution to the annual euro area inflation rate came from services, up 1.5 percentage points, followed by food, alcohol & tobacco, up 0.6.

This data comes ahead of a two-day meeting of the ECB’s Governing Council next week where interest rates will be discussed.

The ECB decided to cut interest rates by 0.25% in June but given this inflation data makes another cut unlikely. The ECB’s inflation target is 2% over the medium term.

However, the decision is being made more difficult by the strength of the euro against the dollar which has been steadily growing over the last few months.

Earlier this week, ECB member and Bundesbank president Joachim Nagel urged caution over the bank’s next move on interest rates.

From a monetary policy perspective, “a steady hand is needed at the moment,” he said, adding September will probably be the appropriate time to “reassess” the situation.