Headline inflation in the eurozone fell to 2.8% in June, down from 3.2% in May, according to data from Eurostat.
The figure came in below market consensus, marking a more rapid deceleration than anticipated and offering a rare positive signal amid the region's ongoing economic challenges.
The cooling trend was broad-based, with preliminary figures from the eurozone’s largest economies—France, Italy, and Spain—all pointing to a sustained downward trajectory.
Energy prices, which had spiked earlier in the year due to geopolitical tensions in the Middle East, were a primary driver of the decline.
As these pressures eased, the pass-through to consumer prices softened significantly.
This development reduces the immediate pressure on the European Central Bank to maintain a restrictive monetary stance.