Eurozone annual inflation accelerated to 2.9% in July, up from 2.8% in June, Eurostat confirmed on Tuesday. Across the wider European Union, inflation climbed to 3%, also up from 2.9% the previous month.
Price pressures varied sharply across member states. Romania posted the highest annual rate at 8.2%, followed by Lithuania at 5.4%, while Sweden recorded the lowest at 0.3%. The Czech Republic had the second-lowest rate at 1.3%. Italy saw a slight easing, with inflation dipping to 2.9% from 3% in June.
In the United Kingdom, the consumer price index rose 2.9% year-on-year, up from 2.6% in June, with core inflation holding at 2.6%. Energy price increases were linked to the ongoing conflict with Iran. The European economy continued to expand in 2026 despite an energy shock, following 1.5% growth in 2025.