EU annual inflation falls to 2.9 percent in June Eurostat report

The annual inflation rate across the European Union fell sharply to 2.9% in June, down from the 3.3% recorded in May, AzerNEWS reports, citing Eurostat, the EU's statistical office.

The Czech Republic emerged as a bright spot in the report, registering an annual consumer price index of 1.1%—the second-lowest inflation rate in the entire bloc. Sweden recorded the lowest rate at 1.0%.

Meanwhile, annual inflation within the Eurozone also experienced a notable decline, dropping to 2.8% in June from 3.2% in May. At the other end of the spectrum, Romania posted the highest inflation rate in the EU, followed closely by Slovakia and Estonia.

Eurostat noted that a major driving force behind the cooling prices was a significant deceleration in energy costs. However, rising prices within the services sector continue to exert upward pressure on the overall index. Financial analysts and experts say they will continue to closely monitor price dynamics in the coming months to see if the downward trend holds.