Eurozone Inflation Climbs to 2.9% in July
2026-07-31 09:12
By
Joana Ferreira
1 min. read
Eurozone annual inflation accelerated to 2.9% in July 2026, in line with market expectations, up from 2.8% in June and remaining well above the European Central Bank's 2.0% target, according to preliminary estimates.
The increase was largely driven by a renewed surge in energy prices, with energy inflation accelerating to 10.0% from 8.5% as hostilities between the US and Iran resumed.
Underlying price pressures also strengthened.
Services inflation edged up to 3.3% from 3.2%, while inflation for non-energy industrial goods rose to 0.9% from 0.7%.
In contrast, food, alcohol, and tobacco inflation eased to 1.2% from 1.5%.
The core inflation rate, which excludes energy and food, increased to 2.5% from 2.4%.
Among the euro area's largest economies, inflation accelerated in Germany (2.8% vs. 2.4%), France (2.4% vs. 2.0%), Spain (3.8% vs. 3.6%), and the Netherlands (2.9% vs. 2.5%), while easing slightly in Italy (2.9% vs. 3.0%).