Eurostat will publish its flash estimate of June eurozone inflation on Monday, June 29, with economists expecting the headline rate to remain close to the European Central Bank's 2% target. The figure will be among the final data points before the ECB's Governing Council meeting in July.

The euro area's annual inflation rate has hovered near target in recent months, after a prolonged campaign of rate cuts by the Frankfurt-based central bank. Policymakers led by President Christine Lagarde have signalled that the bulk of the easing cycle is complete, with attention shifting to core inflation and services prices.

Major banks, including ING and Deutsche Bank, have forecast headline inflation in a range around 1.9% to 2.1%, with core inflation—which strips out energy and food—remaining slightly elevated. Energy prices and a stronger euro have helped contain price pressures across the bloc.

A reading near target would reinforce expectations that the ECB will hold its deposit rate steady at its next meeting, rather than cutting further. Bond markets and the euro are likely to react to any surprise in either direction, particularly in the services component.

The data arrives as European leaders weigh new energy dependencies following warnings over reliance on American liquefied natural gas, a factor that could influence future inflation dynamics across the continent.