Economy

Eurozone Inflation Holds Steady at 2% in July, Defying Analyst Predictions

Stable Inflation Rates Across the Eurozone

The Eurozone's consumer price index (CPI) maintained a steady increase of 2% in July compared to the previous year, as reported by Eurostat in a preliminary release this Friday. This figure mirrors the inflation rate observed in June and slightly surpasses the expectations set by financial analysts.

Core Inflation and Sector-Specific Trends

Delving deeper into the data, core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, remained unchanged at 2.3% from June to July. However, it experienced a slight decrease of 0.2% on a month-to-month basis. In contrast, the annual inflation rate for services saw a modest decline, dropping to 3.1% from 3.3% in June.

Regional Variations in Inflation Rates

The inflation landscape across the Eurozone presented a mixed picture. Estonia led with the highest yearly CPI growth at 5.6%, while Cyprus recorded the lowest at a mere 0.1%. Monthly data revealed Croatia with the highest inflation rate at 1.2%, whereas Italy experienced the most significant drop, with inflation decreasing by 1%.