Overview

• ECB economists report that sustained food costs are limiting a faster decline in overall inflation across the currency bloc.
• Price gains since end-2019 are steep across staples: beef, poultry and pork are up more than 30%, milk about 40% and butter about 50%, with coffee, olive oil, cocoa and chocolate rising even more.
• National increases vary widely, from roughly 20% in Cyprus to 57% in Estonia, with Germany around 37%.
• Euro-area consumer prices rose 2.0% year over year in August 2025, matching the ECB target, yet food inflation has proven slower to unwind after peaking above 15%.
• The ECB projects some easing in the broader outlook, with inflation at 2.1% this year and 1.7% in 2026.