Euro Area Inflation Rises to 2.9% in July 2026, Energy Sector Drives Increase

The European Union's statistical office, Eurostat, has released a flash estimate indicating that euro area annual inflation is expected to reach 2.9% in July 2026, up from 2.8% in June.

This increase is largely driven by the energy sector, which is predicted to have an annual rate of 10.0%, compared to 8.5% in June.

Services are also expected to contribute to inflation, with a projected annual rate of 3.3%, up from 3.2% in June.