08:18 AM EDT, 06/20/2025 (MT Newswires) -- UBS said it forecast June headline inflation for the eurozone to increase by 0.2pp to 2.1% year over year, with higher energy inflation (+1.1pp to -2.5% y/y) due to the recent spike in oil prices as the key driver.

Eurozone inflation for June is due out on July 1.

The bank also expects a 0.1pp increase in both food to 3.3% year over year and core inflation to 2.4% year over year. Within core inflation, UBS estimates services inflation to tick up 0.1pp to 3.3% year over year, while goods inflation is likely to remain unchanged at 0.6% year over year.

At the country level, the bank predicts increases across the board. Specifically, UBS forecasts inflation to rise by 0.2pp to 2.3% year over year in Germany, +0.1pp to 0.7% year over year in France, +0.1pp to 1.8% in Italy, +0.3pp to 2.3% in Spain and +0.1pp to 3% in the Netherlands.