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Euro zone inflation holds steady at higher-than-expected 2% in July
EUROZONE, AUG 1 – Eurozone inflation held at 2%, supported by easing energy costs and stable core prices, prompting major banks to expect no further ECB rate cuts this year.
- After its end-July meeting, the ECB held rates steady as Euro zone inflation remained at 2.0% in July, matching the ECB’s target.
- Over the past year, Eurozone inflation declined from its 10.6% October 2022 peak due to easing energy prices, with July energy prices falling by 2.50%.
- Underlying inflation held at 2.3% in July as services inflation eased to 3.1% and non-energy industrial goods inflation rose to 0.8%.
- Financial markets see less than a 50% chance of another rate cut this year, with major banks including Deutsche Bank, Goldman Sachs and BNP Paribas scaling back expectations.
- Some policymakers fear trade barriers could lower prices in the coming years, despite Germany's budget support and the recent breakthrough in US-EU trade negotiations.
42 Articles
42 Articles
Europe’s Inflation Steadies, but Industrial Concerns Deepen
Economic data released on August 1, 2025, presents a mixed picture for European businesses and investors. Eurozone inflation remained steady, with consumer prices rising 2.0% year-over-year in July, precisely meeting forecasts. Core inflation, excluding volatile food and energy prices, held steady at 2.3%. These stable figures suggest price pressures are under control, offering predictability for […]
Eurozone inflation holds steady at 2.0%, defying slowdown forecast
Consumer prices in the eurozone increased faster than analysts predicted in July, maintaining an annual inflation rate of 2.0%, according to preliminary data released by Eurostat. The figure matched June’s inflation pace. Economists surveyed by Reuters had expected inflation to ease slightly to 1.9%. Core inflation, which excludes energy and unprocessed food, remained unchanged at 2.3%.
Inflation in the euro zone remains stable at the ECB's target of 2.0 percent. The central bank considers this level optimal for the euro area economy.
Euro zone inflation holds at ECB target of 2%
Euro zone inflation held steady at the ECB's 2% target in July, confirming the bank's benign view on prices and strengthening the case for policymakers to keep interest rates on hold for some time after rapidly cutting borrowing costs.
According to Eurostat estimates, the Austrian figure in July is 3.6 percent. In the euro area, inflation remains stable below this figure.
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