Down 5.3% in Euro area in July 2023 and 6.4% in EU

The statistical office of the European Union (Eurostat) is reporting a continuation of the downward trajectory in inflation across Europe in July 2023.

Eurostat reports that the annual inflation rate in the Euro Area for July is 5.3%, down from the 5.5% reported in the previous month of June. The prior year’s rate was 8.9%. 

At the same time, the annual inflation in the European Union (EU) is 6.1% in July, down from 6.4% posted in June 2023. The rate was 9.8% a year earlier.

Services (+2.47 percentage points pp) made the highest contribution to the annual inflation rate in the euro area in July, followed by food, alcohol & tobacco (+2.20 pp), non-energy industrial goods (+1.26 pp) and energy (-0.62 pp).

The highest annual inflation rates were recorded in Hungary (17.5%), Slovakia and Poland (10.3%), while the lowest annual rates were observed in Belgium (1.7%), Luxembourg (2.0%) and Spain (2.1%). 

Compared with June, annual inflation decreased in 19 Member States, remained stable in one and increased in seven.