A customer is in front of a fruit and vegetable position in an outdoor market in Paris on July 15, 2025.
Behrouc Mehri | AFP | Getty images
The Inflation of the euro zone did not change with 2% higher than expected in July, the Flash data of the statistics agency that Eurostat showed on Friday.
The economists surveyed by Reuters expected the figure to reach 1.9%, after a 2% reading in June.
The so -called central inflation, which eliminates the most volatile prices of food, energy, alcohol and tobacco, reached 2.3% in July, the same level as during the previous two months, according to Friday’s data.
Meanwhile, the observed services were printed at 3.1% in July after resuming 3.3% in June.
After the data release, the 10 -year bonus in Germany was more than a higher basic point, while the French 10 -year bond performance increased by less than a basic point.
Looking to the future, fresh inflation data does not suggest that the European Central Bank will choose its interest rate relief cycle soon, Jack Allen-Reynolds said in a note, an attached economist in the euro zone in a note.
The ECB at its July meeting held the stable rates for the first time this year. The markets were the last prices in a probability of more than 94% that the Central Bank also maintains the rates without changes when it meets in September, according to LSEG data.
Allen-Reynolds added that, depending on energy prices, the inflation of the euro zone could, in fact, fall below the 2% target of the ECB in late this year and next year.
“But the noncommissioned officer should be quite small and we suspect that the inflation of the nucleus will remain about 2%. And since the ECB policy formulators are happy with the current monetary policy position, we doubt that inflation that falls slightly below 2% due to the lowest energy prices would be sufficient to boost another reduction in the interest rate,” he added.
The inflation figures follow the steps of indications earlier this week that showed that the economy of the euro zone expanded by 0.1% better than expected in the second quarter, which however was reduced in the growth of 0.6% of the three months at the end of March.
The analysts interpreted the data as the economy of Europe until now showing resilience in the face of the tariff policies of US President Donald Trump. The European Union and Washington recently signed a commercial agreement that includes a 15% basal tax for EU assets to the US sectoral tariffs. UU. And the so -called temporarily reduced reciprocal rights have already been made.
It is widely expected that duties weigh on economic growth, even in the euro zone, and affect the prices of goods for US consumers. Its impact on inflation in Europe remains uncertain.
