Eurozone inflation accelerates to almost 3%

Annual inflation in the eurozone accelerated to 2.9% in July 2026, compared to 2.8% in June. This is according to a preliminary estimate from Eurostat, the statistical office of the European Union.

One of the main reasons for the rise in inflation was the increase in energy prices. In July, energy prices were 10% higher than a year earlier. In June, their increase was 8.5%. The price increase is linked to the situation in the Middle East and its impact on oil and natural gas supplies.

The cost of services rose by 3.3% year-on-year, after a 3.2% increase in June. Meanwhile, price growth for food, alcohol, and tobacco slowed from 1.5% to 1.2%.

Core inflation, which excludes volatile food and energy prices, rose to 2.5%. This measure helps assess the persistence of price pressures in the economy.

Eurozone inflation has been above the European Central Bank's medium-term target of 2% for five consecutive months.

ECB keeps interest rates unchanged

At its meeting on July 23, the European Central Bank left key interest rates unchanged. The deposit rate stands at 2.25%, the main refinancing operations rate at 2.4%, and the marginal lending rate at 2.65%.

The regulator noted that the full impact of the sharp rise in energy prices on consumer prices has yet to materialize. Future rate decisions will depend on inflation dynamics, economic data, and the duration of the energy shock.

Final data on inflation in EU countries for July will be released by Eurostat in mid-August.

Based on materials from: Eurostat, European Central Bank, Financial Times