Latest reading: Consumer prices rose 1.9% on a year-on-year basis in July, following a 1.6% increase in the prior month....
Inflation in Euro Area
The Euro area faced generally low inflation rates over the last decade, often below 2%, reflecting the region's slow economic growth and low inflation expectations. That said, the picture has changed notably since the pandemic: Inflation has exceeded the European Central Bank's 2% from 2021 through 2024, due to the initial rebound in economic activity, global supply pressures, a rise in protectionism and the reduction of Russian gas flows to the bloc.
In the year 2024, the inflation in Euro Area was 2.36%, compared to 0.43% in 2014 and 5.42% in 2023. It averaged 2.21% over the last decade. For more inflation information, visit our dedicated page.
Euro Area Inflation Chart
Note: This chart displays Inflation (HICP, ann. var. %, aop) for Euro Area from 2014 to 2025.
Source: Macrobond.
Euro Area Inflation Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Inflation (HICP, ann. var. %, aop) | 2.6 | 8.4 | 5.5 | 2.4 | 2.1 |
| Inflation (HICP, ann. var. %, eop) | 5.0 | 9.3 | 2.9 | 2.4 | 2.0 |
| Inflation (PPI, ann. var. %, aop) | 12.2 | 32.7 | -2.1 | -4.2 | 0.3 |
Inflation picks up in July from the prior month
Latest reading: Harmonized consumer prices increased 3.0% in annual terms in July, following a 2.8% rise in the previous month and remaining well above the ECB’s 2.0% target. The uptick was largely driven by a renewed surge in energy prices amid the resumption of hostilities between the U.S. and Iran. Relative to the prior month's data, there were higher price pressures for energy prices (+10.3% on a year-on-year basis vs +8.6% in June) and non-energy industrial goods (+0.9% vs +0.7% in June). In contrast, price pressures reduced for food, alcohol and tobacco in July (+1.2% vs +1.5% in June). Finally, the variation in services prices was the same as in the prior month (+3.3% in July and June). Meanwhile, core consumer prices increased 2.5% in annual terms in July, following a 2.4% increase in the prior month. Lastly, harmonized consumer prices increased 0.21% in July on a month-on-month basis, following a 0.10% fall in the previous month.
Panelist insight: Commenting on the outlook, Nomura’s analysts stated: “The immediate dynamics of HICP inflation will continue to be driven by oil prices?. It will take longer for the rise in energy commodity prices to affect core goods prices and even longer to result in second-round inflation effects.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects European inflation projections for the next ten years from a panel of 69 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for European inflation.
Download one of our sample reports to visualize what a Consensus Forecast is and see our European inflation projections.
Want to get access to the full dataset of European inflation forecasts? Send an email to info@focus-economics.com.
Latest Global Inflation News
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Japan: Inflation picks up in July from the prior month -
Netherlands: Inflation picks up in July from the prior month Latest reading: Harmonized consumer prices were up 3.0% on a year-on-year basis in July, following a 2.5% increase in the... -
Italy: Inflation eases in July from the prior month Latest reading: Harmonized consumer prices increased 2.9% in annual terms in July, following a 3.0% increase in the previous month.... -
Portugal: Inflation is unchanged in July Latest reading: Harmonized consumer prices were up 3.1% in annual terms in July, unchanged from the previous month’s reading. Relative... -
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Germany: Inflation rises in July from June Latest reading: Harmonized consumer prices rose 2.8% in annual terms in July, up from 2.4% in June and marking the... -
Estonia: Inflation stabilizes in July Latest reading: Harmonized consumer prices increased 2.0% in annual terms in July, unchanged from the previous month’s reading. July’s reading...