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 – a measure of price increases excluding energy, food, alcohol and tobacco – also remained at 2.3 percent in July, mirroring the June reading. This core rate is closely monitored by the European Central Bank (ECB) as part of its commitment to achieving a 2.0 percent inflation target.
Analyzing the primary components driving inflation within the Eurozone, “food, alcohol and tobacco” are projected to have the highest annual rate at 3.3 percent, a slight increase from 3.1 percent in June. “Services” inflation is estimated at 3.1 percent, a decrease from 3.3 percent the previous month. “Industrial goods excluding energy” measures 0.8 percent, up from 0.5 percent in June, while “energy” shows a negative rate of -2.5 percent, a marginal improvement from -2.6 percent in June.
Significant variation exists across Eurozone member states. Eurostat reports the highest inflation rate in Estonia at 5.6 percent, followed by Slovakia and Croatia, both registering 4.5 percent. Cyprus exhibits the lowest rate at a negligible 0.1 percent. For Germany, Eurostat calculates an inflation rate of 1.8 percent.