The annual inflation rate in the Eurozone remained unchanged in July 2025, holding steady at 2.0 percent, according to data released Friday by the EU’s statistical office, Eurostat. Prices were consistent with the previous month’s figures.
The core inflation rate, which excludes energy, food, alcohol and tobacco, also remained at 2.3 percent in July, mirroring the June figure. This metric is of particular interest to the European Central Bank (ECB) as it monitors progress toward its inflation target of 2 percent.
Analysis of the main components contributing to inflation reveals that “food, alcohol and tobacco” are anticipated to have the highest annual rate (3.3 percent, up from 3.1 percent in June). “Services” followed at 3.1 percent, a decrease from 3.3 percent in June. “Manufactured goods excluding energy” registered at 0.8 percent, compared to 0.5 percent in June. The “energy” component continues to show a negative rate, albeit slightly reduced to -2.5 percent, down from -2.6 percent in June.
Significant disparities exist across Eurozone member states. Eurostat reports the highest inflation rate in Estonia at 5.6 percent, with Slovakia and Croatia following closely at 4.5 percent. In contrast, Cyprus exhibits a remarkably low rate of just 0.1 percent. For Germany, Eurostat’s calculation places the inflation rate at 1.8 percent.
