Eurozone News
LAST UPDATE: August 1, 2025
German Inflation Slows Below 2% for First Time in 10 Months
Germany’s consumer prices rose 1.8% in July year-on-year, down from 2.0% in June—the first sub-2 % reading in ten months.
Insight
Cooler domestic inflation eases pressure on the ECB. Germany’s deceleration may reflect moderating wage or energy influence, providing room for policy stability.
Benign figures suggest euro zone inflation remains around target
National data for Italy (1.7%), France (0.9%), and Spain (2.7%) imply euro-zone inflation is likely holding near 1.9% in July—within the ECB’s 2% goal.
Insight
With inflation under control, the ECB is unlikely to cut rates further. However, trade tensions and exchange-rate shifts may introduce new headwinds that warrant monitoring.
