Eurozone Inflation Holds at 2.0% in July

Eurozone consumer price inflation held steady at 2.0% year-on-year in July 2025, unchanged from June but slightly above market expectations of 1.9%, according to preliminary estimates.

This marks the second consecutive month that inflation has aligned with the European Central Bank’s official target.

A slowdown in services inflation (3.1% vs 3.3% in June) helped offset faster price increases in food, alcohol & tobacco (3.3% vs 3.1%) and non-energy industrial goods (0.8% vs 0.5%).

Energy prices continued to decline, falling by 2.5% following a 2.6% drop in June.

Meanwhile, core inflation—which excludes energy, food, alcohol, and tobacco—remained unchanged at 2.3%, its lowest level since January 2022.