Euro area inflation plateaus at ECB target
The inflation rate in the euro area is stagnating at 2.0%, thus plateauing at the ECB's target.
Commerzbank Economic Research
08/01/2025
Inflation plateaus at the ECB target
According to preliminary data from Eurostat, the inflation rate remained at 2.0% in July, after fluctuating around the ECB target for the previous four months. The consensus of economists had expected a marginal decline to 1.9%. The inflation rate excluding energy, food, and beverages (core rate) stagnated at 2.3% in line with expectations.
At the level of inflation components, the inflation rate for services continued its downward trend since the beginning of the year as the year-on-year fell from 3.3% to 3.1%. This trend was outweighed by other components: The year-on-year rate for energy slightly increased in July to -2.5% from -2,6% in June, as the oil price inched upwards. The year-on-year rates for goods excluding energy rose (from 0.5% to 0.8%), and food and beverages also continued their upward trend (from 3.1% to 3.3%).
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