As of July 2025, the euro area was experiencing annual inflation of 2.0%, according to Eurostat, the EU's statistical agency. This rate was not any slower than the 2.6% registered one year before since it remained the same from the month before. Inflation on an annual basis for the entire EU was 2.4%, which was likewise unchanged from June and only marginally higher than the 2.3% rate from the previous month. It was also lower than July 2024’s inflation rate of 2.8%.

Inflation trends varied particularly across member states. The least rates existed in Cyprus, being 0.1, followed by France, with 0.9%, and then Ireland, with 1.6%. However, the highest were reported in Romania with 6.6%, Estonia with 5.6%, and Slovakia with 4.6%. In comparison with June 2025, inflation decreased in eight EU countries, remained the same in six, and increased in thirteen, making clear already existing regional inequality. At the component level, services accounted for the largest share of inflation in the euro area at 1.46 percentage points, followed by food, alcohol, and tobacco (0.63 points), non-energy industrial goods (0.18 points), and energy prices exerting downward pressure (-0.23 points).

The boldly labelled inflation rate in the euro area indicates a balanced view: although energy was in part easing the overall pressure to raise prices, the upward pace of price growth in services and non-monetary goods continued. For the EU overall, the marginal change is a consequence of the impact of higher inflation in several member states, mainly found in Eastern Europe, wherein price growth was still much above the euro rate. As a whole, July shows mixed inflation numbers. The European Central Bank’s 2% price target for inflation is making the eurozone more stable, but achieving monetary stability across the union is challenging due to variations among nations and industries.