Inflation in the eurozone stabilized at 2% in July

Energy prices fell by 2.5% over the month

Inflation in the eurozone rose by 2% in July 2025 compared to the same month in 2024. Thus, the indicator stabilized at the June level. This is evidenced by preliminary data from Eurostat.

Analysts had expected it to slow to 1.9% on average, according to Trading Economics.

Core inflation, which excludes energy and food costs, rose by 2.3% in July, as in June. Energy prices fell by 2.5% (-2.6% in June).

During the month, the member countries with the highest annual inflation rates were Estonia (+5.6%), Slovakia, and Croatia (both +4.5%). The lowest rates were recorded in Cyprus, Latvia, and Lithuania (all +0.1%). Consumer prices rose by 0.9% in France, 1.7% in Italy, and 1.8% in Germany.

As GMK Center reported earlier, the European Central Bank continues to pursue a policy of monetary stimulus. In June, the ECB lowered interest rates for the eighth time this year. The deposit rate will be 2% from June 11, the main refinancing rate will be 2.15%, and the marginal lending rate will be 2.4%.

According to Eurostat estimates, the EU’s GDP grew by 1% in 2024 compared to 2023. In the eurozone, this figure increased by 0.9% year-on-year. In the fourth quarter, seasonally adjusted EU GDP grew by 0.4% compared to the previous quarter and by 1.4% compared to the same period in 2023. In the eurozone, the indicator rose by 0.2% quarter-on-quarter and 1.2% year-on-year.