Eurozone annual inflation rose to 2.9% in July 2026, matching the flash estimate and up from 2.8% in June, remaining well above the European Central Bank’s 2.0% target, final data showed. The increase was driven mainly by a renewed surge in energy costs, with energy inflation accelerating to 10.3% from 8.5% amid the resumption of hostilities between the US and Iran.
Underlying price pressures also intensified. Services inflation inched up to 3.3% from 3.2%, while inflation for non-energy industrial goods increased to 0.9% from 0.7%. By contrast, inflation for food, alcohol, and tobacco slowed to 1.2% from 1.5%. Core inflation, which excludes energy and food, edged higher to 2.5% from 2.4%.
Among the euro area’s largest economies, inflation picked up in Germany (2.8% vs 2.4%), France (2.4% vs 2.0%), Spain (3.9% vs 3.6%), and the Netherlands (3.0% vs 2.5%), while it eased slightly in Italy (2.9% vs 3.0%).
