Eurostat, Eurozone inflation stable at 2%. UK marks 3.8% and grows more than expected
According to the EU statistics office, Italy's annual inflation rate is 1.7 per cent for July 2025, down slightly from June (1.8 per cent) and up slightly from the same month a year earlier (1.6 per cent). For analysts, the UK economy sees the prospect of a rate cut receding
2' min read
2' min read
In July, the annual inflation rate for the eurozone was 2.0%, stable compared to June. This was announced by Eurostat, the Statistical Office of the European Commission, noting that in July 2024 the figure stood at 2.6 per cent. Italy reported an annual inflation rate of 1.7 per cent for July 2025, slightly down from June (1.8 per cent) and slightly up from the same month in the previous year (1.6 per cent). As for the European Union, the annual inflation rate was 2.4% in July 2025, up from the previous month (2.3%) but down from July 2024 (2.8%). Compared to June 2025, annual inflation declined in eight Member States, remained stable in six and increased in thirteen, Eurostat points out.
The lowest annual rates were recorded in Cyprus (0.1%), France (0.9%) and Ireland (1.6%), the highest in Romania (6.6%), Estonia (5.6%) and Slovakia (4.6%). In July 2025, the highest contribution to the euro area's annual inflation rate came from services (+1.46 pp), followed by food, alcohol and tobacco (+0.63 pp), non-energy industrial goods (+0.18 pp) and energy (-0.23 pp), the European Statistical Office release points out.
Gb, summer travel demand weighs
Less rosy was the inflation picture in the United Kingdom. In July, inflation rose more than analysts had expected, pushed by both summer travel demand, which caused airline ticket prices to rise, and food price growth. According to the National Statistics Institute, the figure stood at +3.8% last month from +3.6% in June. Forecasts, on the other hand, indicated an increase of 3.7% for July.
Inflation in the UK therefore seems persistent and will prevent the Bank of England from cutting interest rates further, writes Joe Nellis, economic advisor at Mha. "Given these underlying pressures, the BoE's monetary policy committee will not, and should not, cut interest rates at its next meeting in September," Nellis says. "Inflation will have to show some signs of improvement if we want to see a cut before the new year."
