According to a flash estimate from Eurostat, euro area annual inflation is expected to be 1.9% in June 2021, down from 2.0% in May. The core figures also inched lower to 0.9% YoY in June when compared to 0.9% expectations and 1.0% recorded in May.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (12.5%, compared with 13.1% in May), followed by non-energy industrial goods (1.2%, compared with 0.7% in May), services (0.7%, compared with 1.1% in May) and food, alcohol & tobacco (0.6%, compared with 0.5% in May).