20.08.202509:00:00UTC+00Euro Zone's Core Inflation Metrics Witness a Downturn in July

In a noteworthy update to the Euro Zone's economic metrics, the Harmonized Index of Consumer Prices (HICP) excluding Energy and Food has shown a decline, moving from 0.3% to -0.1% in July 2025. This shift marks a significant change in the region's core inflation dynamics over the month, as reported on August 20, 2025.

The monthly comparison reveals that while June saw a modest increase of 0.3% in the HICP ex Energy and Food, July has reversed this trend, showcasing a drop of 0.1%. This development raises questions about the underlying economic factors contributing to this downturn, especially considering the index excludes volatile energy and food prices.

Economists and analysts will now turn their focus to understanding the causes of this unexpected decline, whether they stem from demand-side factors or particular policy impacts within the Euro Zone. As the data unfolds, the alterations in the HICP will be closely monitored, serving as a critical indicator for policymakers seeking to maintain economic stability.