Eurozone annual inflation picked up to 2.9% in July 2026, from 2.8% in June, matching market expectations and remaining well above the European Central Bank’s 2.0% target, according to preliminary estimates.
The acceleration was largely driven by a renewed spike in energy costs, with energy inflation jumping to 10.0% from 8.5% as hostilities between the US and Iran resumed. Underlying price pressures also intensified: services inflation edged up to 3.3% from 3.2%, and inflation for non-energy industrial goods rose to 0.9% from 0.7%. By contrast, inflation for food, alcohol, and tobacco eased to 1.2% from 1.5%.
The core inflation rate, which excludes energy and food, increased to 2.5% from 2.4%.
Across the largest economies in the euro area, inflation accelerated in Germany (2.8% vs. 2.4%), France (2.4% vs. 2.0%), Spain (3.8% vs. 3.6%), and the Netherlands (2.9% vs. 2.5%), while easing slightly in Italy (2.9% vs. 3.0%).
