Portugal's annual inflation rate slowed to 3.0% in July, down from 3.2% the previous month, marking a second consecutive monthly decline. Core inflation, which strips out volatile items, edged up to 2.6%, while energy prices moderated to an 8.7% year-on-year increase and unprocessed food prices fell sharply to 3.7% from 5.1%, according to preliminary data from the national statistics institute. Monthly consumer prices dipped 0.5%, and the EU-harmonised gauge came in at 3.1%. Final figures are due on August 12.
In Austria, inflation eased to 2.7% in July from 3.2% in June, driven in part by a value-added tax cut on basic groceries that took effect on July 1, which pushed food, tobacco, and alcohol prices slightly below year-ago levels. Services remained the primary driver at 4.4%, while energy costs accelerated to 5.7%. Statistics Austria will release final consumer price data on August 19.