The euro area's annual inflation rate rose to 2.9% in July 2026, up from 2.8% in June, according to data published by Eurostat, the statistical office of the European Union. A year earlier, the rate was 2.0%. Across the broader European Union, annual inflation reached 3.0% in July 2026, compared with 2.9% in June and 2.4% in July 2025.

Services were the largest driver of price growth, contributing +1.55 percentage points to the euro area's annual inflation rate in July 2026. Energy followed with a contribution of +0.94 percentage points, while both non-energy industrial goods and food, alcohol and tobacco each added +0.23 percentage points.

Wide divergences persisted across member states. The lowest annual rates in July 2026 were recorded in Sweden at 0.3%, Czechia at 1.3%, and Denmark and Hungary at 1.6% each. At the other end of the scale, Romania posted the highest rate at 8.2%, followed by Lithuania at 5.4% and Cyprus and Bulgaria at 4.4% each. Compared with June 2026, annual inflation fell in fifteen member states, remained stable in three, and rose in nine.

The figures reflect the euro area's expanded composition: from 1 January 2026, Bulgaria joined the currency bloc, bringing the total number of members to 21. Data for months up to December 2025 therefore refer to the 20-member configuration, while figures from January 2026 onward cover 21 members. Changes in composition are incorporated using a chain index formula.

Eurostat had already issued a flash estimate for July 2026 on 31 July 2026, which placed the rate at 2.9%, in line with the confirmed figure. The next flash estimate, covering August 2026, is scheduled for release on 1 September 2026.

This article is based on a verified primary source. The text was editorially reviewed and fact-checked prior to publication.