Eurozone inflation holds at 2% as euro slumps against dollar

Eurozone inflation held steady at 2% in July, easing pressure on the ECB. The euro is on track for its worst week since 2022 amid trade tensions and strong US data, according Euronews.

Inflation no longer appears to be a pressing concern in the eurozone, holding steady at a level that allows the European Central Bank (ECB) some breathing space — at least for now.

According to preliminary figures released by Eurostat on Friday, consumer prices rose 2% year-on-year in July, the same pace as in June. On a monthly basis, prices were flat.

Although economists had expected a slight dip to 1.9% year-over-year, the reading validates the ECB’s strategy following years of persistent inflationary pressure.

Looking at the main categories, food, alcohol and tobacco saw the highest annual inflation rate at 3.3% in July, up from 3.1% in June.

Services followed at 3.1%, down from 3.3%, while non-energy industrial goods rose to 0.8%. Energy prices stayed in negative territory at -2.5%.