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Estimated Eurozone inflation rate for July stipulated at 2%

Eurostat's preliminary estimate reveals a lower inflation rate for the Eurozone in July 2025, at 2.0%, as compared to the 2.6% recorded in July 2024, and remaining consistent with the June rates.

Estimated Eurozone Inflation Rate Stands at 2% for July
Estimated Eurozone Inflation Rate Stands at 2% for July

Estimated Eurozone inflation rate for July stipulated at 2%

Euro Area Inflation Trends: July 2025 Update

The European Central Bank (ECB) has released the latest inflation figures for the euro area as of July 2025. Here's a breakdown of the trends across various components.

Food, alcohol & tobacco inflation saw a slight increase, rising from 3.1% in June to 3.3% in July. This marks the highest inflation rate among components, with food prices modestly on the rise.

Services inflation decreased marginally, dropping from 3.3% in June to 3.1% in July. After a slight acceleration from May to June, services inflation retreated slightly in July.

Non-energy industrial goods inflation showed a modest increase, rising from 0.5% in June to 0.8% in July. This component experienced a slight easing from May to June, but it gained some momentum in July.

Energy inflation remained negative but improved marginally, with a smaller decline of -2.5% in July compared to -2.6% in June. The rate of price decline for energy had softened from -3.6% in May to -2.6% in June before stabilizing around -2.5% in July.

Overall, the euro area annual headline inflation rate stayed stable at 2.0% in July 2025, unchanged from June. Core inflation, which excludes energy and food prices, also remained steady at 2.3%.

Country-specific Inflation Rates

Ireland maintains one of the lowest inflation rates among eurozone countries, with a homogenous rate of 1.6% in July. On the other hand, Estonia has the highest homogenous inflation rate (5.6%) among eurozone countries in July. Portugal's inflation rate, as measured by the HICP, is estimated at 2.5%, placing it higher than France's (0.9%) but lower than Estonia's (5.6%).

Portugal is not among the top three countries with the highest homogenous inflation rate in July, with Latvia (3.9%) and Croatia and Slovakia (4.5% each) taking those spots. Portugal is also not among the bottom two countries with the lowest homogenous inflation rate in July. Cyprus has one of the lowest rates (1.1%) among eurozone countries in July.

Inflation figures for energy and services in Portugal are not provided for July. However, the homogenous rate of inflation for energy in the euro area decreased from -2.6% in June to -2.5% in July, while the homogenous rate of inflation for services decreased from 3.3% in June to 3.1% in July. The homogenous rate of inflation for non-energy industrial products in the euro area increased from 0.5% in June to 0.8% in July. The inflation rate for non-energy industrial products in Portugal is not provided for July.

In summary, the euro area is experiencing a mixed but generally stable inflation environment, with energy prices continuing their decline at a slower pace, food prices rising modestly, services inflation retreating slightly, and non-energy industrial goods inflation gaining some momentum. Country-specific inflation rates vary, with Ireland maintaining one of the lowest rates and Estonia experiencing one of the highest. Portugal's inflation rate is higher than France's but lower than Estonia's among eurozone countries.

The finance ministry of the euro area needs to carefully monitor the fluctuation in food, alcohol & tobacco prices, as they showed a slight increase, reaching 3.3% in July, making it the highest inflation rate among components.

In order to maintain the overall stability of the euro area economy, it is crucial to address the continued decline in energy prices, as energy inflation remained negative but improved marginally, with a rate of -2.5% in July.

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