Estimated Eurozone inflation rate stands at 2%
Eurozone Inflation Remains Stable at 2.0% in July 2025
In a recent update, the latest Eurozone inflation data has revealed that the annual inflation rate in the euro area remains stable at 2.0% in July 2025. This figure holds steady after a slight rise from 1.9% in May to 2.0% in June 2025.
Compared to a year earlier, when inflation was higher at 2.5% in the euro area, inflationary pressures have generally eased. The annual inflation rates for different categories in July 2025 are as follows:
- Food, alcohol & tobacco inflation increased slightly to 3.3% from 3.1% in June.
- Services inflation decreased to 3.1% from 3.3%.
- Non-energy industrial goods inflation rose to 0.8% from 0.5%.
- Energy prices remained negative but slightly less so, at –2.5% compared with –2.6% in June.
The European Union's statistical office has analyzed the main components of eurozone inflation, and the data shows that inflation rates fell in five member states but rose in twenty-two, indicating a broadly mixed but slightly rising inflation backdrop within the Eurozone.
Regarding country-specific trends, the lowest annual inflation rates were in Cyprus (0.1% in July), France (0.9%), and Ireland (1.6%). On the other hand, the highest inflation rates were seen in Estonia (5.6%), Romania (5.8% in June), Hungary, Slovakia (both 4.6%), and Croatia (4.5% in July).
The core inflation rate, excluding food and energy, remained steady at 2.3%, though it showed the first month-on-month decline (–0.2%) since January 2025, suggesting moderating underlying inflationary pressures.
Here is a summary of the latest trends:
| Category | June 2025 Inflation Rate | July 2025 Inflation Rate | Change | |---------------------------|--------------------------|--------------------------|--------------------| | Food, Alcohol & Tobacco | 3.1% | 3.3% | Slight increase | | Services | 3.3% | 3.1% | Slight decrease | | Non-energy Industrial Goods | 0.5% | 0.8% | Moderate increase | | Energy | –2.6% | –2.5% | Slightly less negative |
| Country | Latest Inflation Rate (July 2025 where available) | Comment | |------------------|--------------------------------------------------|-------------------------------| | Cyprus | 0.1% | Lowest inflation | | France | 0.9% | Very low inflation | | Ireland | 1.6% | Low inflation | | Estonia | 5.6% | Among the highest inflation | | Romania | 5.8% (June) | Highest (latest June data) | | Hungary | 4.6% (June) | High inflation rate | | Slovakia | 4.6% (June) | High inflation rate | | Croatia | 4.5% | High inflation |
The Harmonized Index of Consumer Prices (HICP) was used to measure inflation rates in the eurozone countries. Portugal is estimated to have an HICP inflation rate of 2.5% in July.
The stability at 2% gives the European Central Bank some room for monetary policy decisions without immediate inflationary pressures. France, with an annual inflation rate of 0.9% in July, is among the countries with very low inflation. On the other hand, countries like Estonia, Romania, Hungary, Slovakia, and Croatia continue to experience higher inflation rates. Energy prices continue to deflate, with a negative annual rate of -2.5% in July.
In the context of the Eurozone's stable inflation rate, Portugal is estimated to have an HICP inflation rate of 2.5% in July 2025, which falls under the category of countries with manageable inflation. In the area of finance, this figure raises potential implications for Portugal's monetary policy decisions, as stable inflation allows for some flexibility in the European Central Bank's decision-making process.
