FX.co ★ Eurozone Inflation Holds at 2.0% in July

In July 2025, consumer price inflation within the Eurozone maintained a steady rate of 2.0% on a year-over-year basis, matching June's rate and slightly exceeding market forecasts of 1.9%, according to preliminary data. This marks the second month in a row where inflation aligns with the European Central Bank’s target. While there was a slowdown in services inflation—dropping to 3.1% from June's 3.3%—this was counterbalanced by quicker rises in food, alcohol, and tobacco prices, which increased to 3.3% from 3.1%, as well as a rise in non-energy industrial goods prices to 0.8% from 0.5%. Energy prices saw a continued decline, decreasing by 2.5% after a 2.6% decrease in June. At the same time, core inflation, which excludes volatile categories such as energy, food, alcohol, and tobacco, remained unchanged at 2.3%, marking its lowest level since January 2022.