Euro area HICP inflation was confirmed at 2.0% YoY in July 2025, unchanged from June, while the monthly rate was flat at 0.0%, suggesting overall price pressures remained stable.

• Core inflation (all-items excluding energy) eased slightly to 2.5% YoY (from 2.5% in June) and -0.1% MoM, indicating modest softening in underlying inflation.

• Services inflation accelerated to 3.2% YoY and 1.1% MoM, making it the largest contributor to overall price pressures.

• Energy prices declined -2.4% YoY but rose 1.0% MoM, reflecting ongoing volatility in energy costs.

• Processed food, alcohol & tobacco rose 2.7% YoY and 0.3% MoM, while unprocessed food accelerated to 5.4% YoY despite a -0.2% MoM decline.

• Non-energy industrial goods were up 0.8% YoY, but fell -2.4% MoM, pointing to some easing in goods price pressures.

• Services remains the main contributor to inflation at 1.46 ppts in July, down from 1.51 ppts in June. The contributions from food and non-energy goods both ticked up, by 4 bps and 5 bps, respectively.