Euro Area Annual Inflation Expected to Reach 2.9% in July

The European Union's statistical office, Eurostat, reported that euro area annual inflation is expected to reach 2.9% in July 2026, a 0.1 percentage point increase from June.

The main components of euro area inflation are energy, services, food, alcohol & tobacco, and non-energy industrial goods. Energy is expected to have the highest annual rate at 10.0%, followed by services at 3.3%.

The flash estimate suggests that energy prices will continue to drive inflation in the coming months, with an estimated 2.4 percentage point increase from June.