Euro Indicators

• House prices in the euro area rose by 4.7% during the first quarter of 2026 compared to the same period the previous year. • On a broader scale, the European Union saw a slightly higher increase of 5.1% in house prices for the same quarter. • These figures indicate a slight deceleration in growth compared to the fourth quarter of 2025, when prices rose by 5.1% in the euro area and 5.4% in the EU.

• Eurostat's flash estimate indicates that annual inflation in the Euro area is expected to drop to 2.8% in June 2026, down from 3.2% in May. • Energy remains the highest driver of inflation at an expected 8.7%, though this is a decrease from 10.8% in the previous month. • Other key components also showed declines, with services falling to 3.2% and food, alcohol, and tobacco dropping to 1.6%.

• The European Central Bank (ECB) is introducing new indicators to assess the global appeal of the euro by analyzing currency exposures within the euro area's international investment position. • Data from 2024 reveals that the euro area accounted for approximately one-fifth of global cross-border assets and liabilities, totaling around €175 trillion. • This analysis is critical for understanding the single currency's role in international finance and its ability to maintain price stability and purchasing power.