Eurozone Inflation Edges Up, Greece's Rate Slows Sharply

Greek inflation slowed sharply to 2.7% in July from 3.9% in June, according to Eurostat's preliminary flash estimate released.

Across the Eurozone, annual inflation is estimated to have edged up to 2.9% in July from 2.8% a month earlier.

The main driver of inflation remains energy prices, which rose 10.0% year-on-year in July, accelerating from 8.5% in June. Inflation in services increased marginally to 3.3% from 3.2%, while food, alcohol and tobacco inflation eased to 1.2% from 1.5%. Non-energy industrial goods saw a slight increase in inflation to 0.9% from 0.7%.

Greece's annual inflation rate fell below the Eurozone average after accelerating to 3.9% in June, according to Eurostat's estimates. Among Eurozone members, Estonia recorded the lowest annual inflation rate at 2.0%, followed by Malta (2.1%), France (2.4%), Latvia (2.5%), and Austria and Finland (both 2.6%).

Lithuania posted the highest inflation rate at 5.6% in July, followed by Cyprus (4.0%), Spain (3.8%), and Croatia (3.6%). Greece's economy continues to navigate its post-pandemic recovery, with tourism maintaining positive momentum and economic sentiment improving slightly in June.