The annual inflation rate has inched up month-over-month in Europe.

In the Euro Area, the annual inflation for July is up to 2.6 per cent, coming from 2.5 per cent in the previous month of June. A year ago, the rate was 5.3 per cent. 

The annual inflation in the European Union rose to 2.8 per cent in July 2024, up from 2.6 per cent in June. A year earlier, the rate was 6.1 per cent.

Finland had the lowest yearly rates (0.5 per cent), followed by Latvia (0.8 per cent) and Denmark (1.0 per cent). The highest annual rates were found in Romania (5.8 per cent), Belgium (5.4 per cent), and Hungary (4.1 per cent).

Compared to June 2024, the annual inflation declined in nine Member States, held stable in four, and increased in fourteen. 

In July 2024, services contributed the most to the annual Euro Area inflation rate (+1.82 percentage points), followed by food, alcohol, and tobacco (+0.45 pp), non-energy industrial goods (+0.19 pp), and energy (+0.12 pp).