Eurozone food inflation fell to 1.6% in June 2026, its lowest rate since mid-2021, down from 2.5% at the end of last year. Oxford Economics, however, expects the rate to climb back toward 3% in 2027, driven by the lingering impact of commodity markets and extreme weather.
A March–June commodity shock, which saw Brent crude spike to $118 a barrel during the Iran conflict before retreating to roughly $83, continues to ripple through supply chains. Deutsche Bank estimates the shock could lift euro area food prices by 0.8% over the coming year, while Oxford Economics warns this summer's heatwaves could add up to one percentage point to food inflation in 2027.
Consumers still face uneven price pressures at the shelf. Egg prices surged 14.1% year-on-year in June and beef rose 11%, though fresh fruit and sugar posted declines.