A flash estimate from the statistical office of the European Union, Eurostat, states that the Euro area annual inflation is expected to be 2.9% in July 2026, up .01% from 2.8% in June. 

Eurostat notes that energy is expected to have the highest annual rate in July, up to 10.0% compared with 8.5% in June, followed by services, up to 3.3% from June's 3.2%, followed by food, alcohol & tobacco products, down to 1.2% compared with 1.5% last month, and then non-energy industrial goods, 0.9% compared with 0.7% in June. 

Core inflation, which strips out volatile food and energy prices, also increased to 2.5%, from 2.4%.

The eurozone consumer price growth increased due to the renewed US aggression on Iran, which drove energy prices higher as a result of the closure of the Strait of Hormuz; especially after the Iranian Maritime Navigation Authority in the Gulf stated on Friday that navigation through the Strait of Hormuz is currently impossible due to ongoing US military hostilities. 

Source:Websites