Eurozone inflation stabilised at 2.0%
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According to Eurostat, inflation in the euro area remained at 2.0% in July 2025, the same as in June. However, this stable figure hides a complex structure of price dynamics, reflecting seasonal fluctuations, geopolitical shifts and changes in demand.
The largest contribution to annual inflation was made by food products, alcohol and tobacco, which rose in price by an average of 3.3%. This is higher than in June (3.1 per cent) and is believed to be due to the rise in prices of unprocessed products - fruits, vegetables and meat. Their subcategory showed a jump to 5.4%, while a month earlier the increase was 4.6%.
The services sector showed a slight slowdown in inflation from 3.3 per cent in June to 3.1 per cent in July. This may reflect lower demand for travel and transport services, especially in countries where seasonal supply saturation reduces pressure on prices.
At the same time, energy prices fell again, this time by 2.5% year-on-year, which may indicate both a stabilisation of international gas and oil prices and a growing share of renewables in the energy mix.
Some countries showed higher inflation rates: Estonia at 5.6 per cent, Slovakia at 4.5 per cent and Croatia at 4.5 per cent. At the same time, Germany (1.8%) and France (0.9%) remain closer to the European Central Bank's target levels. Luxembourg shows a moderate growth of 2.6%.
The report pays special attention to the so-called "core inflation" - an indicator excluding energy, alcohol, tobacco and unprocessed products. Here the rates remained at 2.3%, which indicates a restrained growth of prices for most goods and services, without the influence of volatile components.
This data strengthens the European Central Bank's position in favour of a cautious monetary policy. On the one hand, the key inflation target (2.0%) has been achieved, but on the other hand, the risk of repeated price growth in certain sectors remains.
The next full report for July will be published on 20 August 2025. It is this report that will give a clearer picture of trends within the different categories and countries of the euro area.
