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The client stands in front of a series of fruits and vegetables at the outdoor market in Paris on July 15, 2025.
Behrouz Mehri | AFP | Ghetto images
The euro area inflation was unchanged at higher than the expected 2% in July, a flash data from the Eurostat Statistics Agency showed on Friday.
Reuters’ economists have expected the figure to reach 1.9% after 2% reporting June.
The so-called basic inflation that enchants the more faint prices of food, energy, alcohol and tobacco reached 2.3% in July, the same level as in the previous two months, according to Friday.
Meanwhile, Wathed Services imprints to 3.1% in July after rising to 3.3% slightly in June.
After the data is released, the yield of Germany’s 10-year bond was more than one base higher, while the yield of the French 10-year bond rose less than one base.
Looking forward, fresh inflation data does not suggest that the European Central Bank will take its interest rate, a lightened cycle soon, said the Deputy Economist of the euro area at Capital Economics.
ECB at their meeting in July retained tariffs stable For the first time this year. The markets were the last prices with over 94% chance of the central bank to also keep the percentages unchanged when the next one meets in September, according to LSEG Data.
Alan-Renolds added that, depending on energy prices, the euro area inflation could actually fall below 2% ECB’s target later this year and next year.
“But the lower part should be quite small and we suspect that the basic inflation will remain nearly 2%. And given that the ECB politicians are satisfied with the current position of monetary policy, we doubt that inflation falls just below 2% due to the lower energy prices would be sufficient to cause another interest reduction,” he added.
Inflation data follow the steps of indications earlier this week that showed Euro area economy Expanded with the better expected 0.1% in the second quarter, which still sharply decreased by 0.6% growth to three months until the end of March.
Analysts have interpreted data as an economy of Europe so far, showing sustainability facing US President Donald Trump’s tariff policies. Recently, the European Union and Washington have signed a trade agreement, which includes a 15% Basic Base on EU goods, tied to the US sector tariffs and temporarily reduced so -called reciprocal obligations are already in the game.
Obligations are expected to weigh economic growth, including in the euro area, and influence the prices of goods for US consumers. Their impact on inflation in Europe remains uncertain.
