The euro area's annual inflation rate held firm at 2.0% in July 2025, unchanged from June, according to data released by Eurostat, the statistical office of the European Union. A year earlier, the rate stood at 2.6%. Across the wider European Union, annual inflation edged up to 2.4%, from 2.3% in June, compared to 2.8% in July 2024.
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The July figures reflect varying national trends. The lowest annual rates were observed in Cyprus (0.1%), France (0.9%) and Ireland (1.6%). In contrast, the highest rates were recorded in Romania (6.6%), Estonia (5.6%) and Slovakia (4.6%).
Compared with the previous month, annual inflation fell in eight Member States, remained stable in six, and rose in thirteen.
Services continued to be the main driver of inflation, contributing +1.46 percentage points (pp) to the euro area's overall rate, followed by food, alcohol & tobacco (+0.63 pp), non-energy industrial goods (+0.18 pp), while energy exerted a downward pull (-0.23 pp).
A spokesperson for Eurostat noted that the stability in euro area inflation suggests that price pressures have moderated after the volatility of the past two years. However, the divergence across Member States signals that "local factors remain significant in shaping national inflation trajectories."
The latest release also serves as a benchmark for policymakers and analysts ahead of the next flash estimate for August 2025, scheduled for 2 September 2025.
Annual inflation represents the price change of consumer goods and services between the current month and the same month of the previous year, while monthly inflation measures the change compared to the previous month.
With inflation stabilising near the European Central Bank's medium-term target, attention now turns to upcoming policy decisions and external pressures that could influence price movements heading into the final quarter of the year.
More information:
Eurostat
www.ec.europa.eu
