The euro area inflation rate stood at 2.6 percent year over year in July, a tenth of a percentage point higher than June, as confirmed by Eurostat, the European statistical office. In contrast, the overall European Union inflation rose to 2.8 percent, two tenths higher than in June.
The acceleration in price growth across the euro region mirrors a notable increase in energy costs, which rose by 1.2 percent year on year after a 0.2 percent rise in June. Fresh foods also contributed to higher inflation, climbing by 1 percent annually, three tenths lower than the previous month.
Additionally, energy and consumer goods outside industry costs were up, with non industrial energy goods increasing by 0.7 percent in July, aligning with June, while services prices rose by 4 percent year on year, slightly below the increase observed in June.
When energy is excluded from the price dynamics, the inflation rate slows to 2.7 percent in July from 2.8 percent in the prior month. Excluding energy as well as food, tobacco, and alcohol, the core inflation rate held at 2.9 percent for the third consecutive month. Among the twenty seven member states, inflation year over year fell in nine states, remained stable in four, and rose in fourteen compared with June 2024.
The lowest annual inflation rates were recorded in Finland at 0.5 percent, Latvia at 0.8 percent, and Denmark at 1 percent, while the highest rates were in Romania at 5.8 percent, Belgium at 5.4 percent, and Hungary at 4.1 percent.
In Spain, prices increased by 2.9 percent year on year in July, seven tenths of a point lower than in June, narrowing the price gap with the euro area to three tenths of a point.