Inflation in the euro area resembles a roller coaster ride, alternating between peaks and troughs. According to Eurostat, euro area annual inflation decelerated to 2.5% in the first month of the summer. This slowdown in consumer price growth, however, is seen as insignificant by European leaders.
Data showed that the annual inflation rate across the eurozone was 2.5% in June, down from 2.6% in May. The figure was in line with the statistical office's preliminary estimate. To put this in perspective, a year earlier, the consumer price index in the euro area came in at 5.5%. On a monthly basis, consumer prices in the EU increased by 0.2% in June 2024.
Eurostat reported that the lowest annual inflation rates were recorded in Finland (0.5%), Italy (0.9%), and Lithuania (1%). In contrast, consumer prices rose the most in Belgium (5.4%), Romania (5.3%), Spain (3.6%), and Hungary (3.6%).
Meanwhile, in Russia, which is under pressure from numerous sanctions from the West, the inflation rate inched down in June this year. According to the Bank of Russia, inflation was 0.64% last month, down from 0.74% in May. On an annual basis, seasonally adjusted consumer price growth in Russia eased to 9.3% from 10.7% in the prior month. Nevertheless, inflation in the country remains high, exceeding the rates observed from January to April 2024.
