Close Menu
    Trending
    • Magnitude 5.4 quake hits Gilgit-Baltistan near Sost
    • South Korea car exports set July high at $6.24 billion
    • U.S. Polo Assn. Takes No. 1 Spot for All Sports Brands and Climbs to No. 22 Overall on License Global’s 2026 ‘Top Global Licensors’ Ranking
    • Total eclipse tracks across Russia, Iceland and Spain
    • Etihad adds nonstop Abu Dhabi Gothenburg winter flights
    • UN marks International Youth Day with youth investment call
    • Diesel prices climb amid tight US and European fuel supply
    • Japan launches Michibiki No. 7 satellite aboard H3 rocket
    • Home
    • Contact Us
    Africa News HoundAfrica News Hound
    Saturday, August 15
    • Automotive
    • Business
    • Entertainment
    • Health
    • Luxury
    • Lifestyle
    • News
    • Sports
    • Technology
    • Travel
    Africa News HoundAfrica News Hound
    Home » Inflation climbs in euro area driven by services sector
    Business

    Inflation climbs in euro area driven by services sector

    July 18, 2025
    Facebook WhatsApp Twitter Pinterest LinkedIn Telegram Tumblr Email Reddit VKontakte

    Annual inflation in the euro area increased to 2.0 percent in June 2025, rising slightly from 1.9 percent recorded in May, according to data released by Eurostat, the statistical office of the European Union. This marks a continued moderation compared to the inflation rate of 2.5 percent registered in June 2024.

    Across the broader European Union, the annual inflation rate reached 2.3 percent in June 2025, up from 2.2 percent the previous month. In June 2024, the Euro area inflation rate had been slightly higher at 2.6 percent. These figures indicate a general stabilization of inflation levels within the euro area and the wider EU over the past twelve months, despite minor monthly fluctuations.

    Eurostat’s latest report highlights notable disparities in inflation rates among EU member states. The lowest annual inflation rates in June 2025 were observed in Cyprus at 0.5 percent, followed by France at 0.9 percent and Ireland at 1.6 percent. In contrast, the highest annual inflation rates were recorded in Romania at 5.8 percent, Estonia at 5.2 percent, and both Hungary and Slovakia at 4.6 percent.

    Euro area inflation rises to 2.0 percent as services and food costs climb

    These figures reflect the ongoing economic divergence within the European Union, particularly between Western and Eastern member states. Compared with May 2025, annual inflation fell in only five member states, while twenty-two experienced an increase. This trend suggests persistent inflationary pressures in the majority of EU countries, albeit at varying levels.

    The continued rise in prices in several Eastern European economies remains a significant factor contributing to the overall inflation figures within the bloc. Eurostat’s breakdown of inflation components shows that the services sector was the primary driver of inflation within the euro area in June.

    Services contributed 1.51 percentage points to the annual inflation rate, indicating their significant influence on overall price levels. Food, alcohol, and tobacco followed with a contribution of 0.59 percentage points. Non-energy industrial goods added a modest 0.13 percentage points, while the energy sector made a negative contribution of 0.25 percentage points, reflecting declining energy prices in the region.

    Eurostat reports steady inflation gains despite falling energy prices

    The data underscores the mixed inflationary environment within the euro area, with core sectors such as services and essential goods exerting upward pressure, while energy prices continue to provide a moderating effect. Policymakers at the European Central Bank are expected to monitor these trends closely as they assess the future trajectory of interest rates and other monetary policy tools aimed at maintaining price stability.

    Eurostat’s inflation figures provide an important barometer for assessing the health of the Euro zone economy as it continues to recover from recent economic shocks. The balance between growth and inflation will likely remain a key focus for economic decision-makers in the months ahead. – By EuroWire News Desk.

    Related Posts

    South Korea car exports set July high at $6.24 billion

    August 14, 2026

    Diesel prices climb amid tight US and European fuel supply

    August 12, 2026

    Extreme heat could cut EU economic growth in 2026

    August 11, 2026

    Denmark July CPI rises 1.3% as annual inflation slows

    August 11, 2026

    Gold extends three-day rally before US inflation reports

    August 11, 2026

    Record heat pushes up food prices across South Korea

    August 10, 2026
    Latest News

    Magnitude 5.4 quake hits Gilgit-Baltistan near Sost

    August 14, 2026

    GILGIT-BALTISTAN / RankWire.AI / – A magnitude 5.4 earthquake struck northeastern Pakistan early Thursday, sending strong tremors through parts of Gilgit-Baltistan. Pakistan’s official seismic record measured the earthquake at magnitude 5.3. The tremor occurred at…

    South Korea car exports set July high at $6.24 billion

    August 14, 2026

    SEOUL, SOUTH KOREA / RankWire.AI / – South Korea’s automobile exports climbed 7.0% from a year earlier to US$6.24 billion in July 2026. The figure set a record for the month of July and exceeded…

    Total eclipse tracks across Russia, Iceland and Spain

    August 13, 2026

    MOSCOW / RankWire.AI / – A total solar eclipse crossed the Russian Arctic on August 12, 2026, before moving toward Europe. The event began over remote northern areas of Russia at about 17:00 GMT. Roscosmos…

    Etihad adds nonstop Abu Dhabi Gothenburg winter flights

    August 13, 2026

    ABU DHABI / RankWire.AI / – Etihad Airways will open a seasonal nonstop route between Abu Dhabi and Gothenburg on December 17, 2026. The service will run four times each week until March 21, 2027.…

    © 2026 Africa News Hound | All Rights Reserved
    • Home
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.