20.08.202509:14:22UTC+00Euro Area Inflation Holds at 2%

Inflation in the Eurozone held steady at an annual rate of 2% in July 2025, matching the previous month's rate and coming in line with preliminary estimates. This remains slightly above the initial market forecast of 1.9%. This is the second month in a row that inflation has met the European Central Bank's target. While there was a deceleration in price growth for services, now at 3.2% compared to 3.3% in June, this matched the three-year low seen in May and helped counterbalance increases in most other components of the region’s consumer price index. Specifically, there was a quicker rise in prices for non-energy industrial goods, up to 0.8% from 0.5%, and for food, alcohol, and tobacco, climbing to 3.3% from 3.1%. Energy prices saw a slower rate of deflation, declining by 2.4% compared to 2.6% previously. Core inflation, which strips out the volatile categories of energy, food, alcohol, and tobacco, remained constant at 2.3%, marking its lowest point since January 2022.