Inflation in Germany, France and Italy cooled more than expected in June, suggesting price pressures are softening amid falling energy costs. Germany’s EU-harmonized consumer price growth slowed to 2.4% from 2.7% in May, below the 2.5% forecast. French inflation eased to 2.0% from 2.8%, and Italy’s to 3.0% from 3.2%, both undershooting expectations. The slowdown follows a significant drop in oil prices linked to easing U.S.-Iran tensions, with markets betting on resumed flows through the Strait of Hormuz. The data weakens the case for a second European Central Bank rate hike after its first increase in nearly three years, though policymakers remain cautious about whether energy-driven price pressures will prove temporary.