Inflation in the Eurozone recovers to 2.6% in July, core inflation remains at 2.9% for the third month in a row

CdM | Inflation in the euro area was 2.6% year-on-year in July, one tenth of a percentage point higher than the price increase in June. As confirmed by the EU statistics office Eurostat, the rate in the EU as a whole also rose to 2.8%, two tenths of a percentage point more than in June.

The acceleration in price increases in the euro area is due to the 1.2% increase in energy costs, after a 0.2% year-on-year increase in June. In contrast, fresh food prices moderated their increase by three tenths of a percentage point compared to June, to 1% year-on-year.

Similarly, prices for non-industrial energy goods rose 0.7 percent in July, matching June's increase, while services rose 4 percent year-on-year, one-tenth of a percentage point less than the previous month's increase.

However, core inflation in the euro area – which excludes energy, fresh food and tobacco due to their volatility – remained stable for the third month in a row at 2.9 percent. This figure serves as a reference value for the European Central Bank (ECB) in its monetary policy.

Romania records the highest price increase. Among the EU-27, compared with June 2024, annual inflation fell in nine Member States, remained stable in four and rose in fourteen.

However, the lowest annual inflation rates were recorded in Finland (0.5%), Latvia (0.8%) and Denmark (1%), while the highest annual rates were observed in Romania (5.8%), Belgium (5.4%) and Hungary (4.1%).