What euro area country reported the highest annual inflation rate in July 2025?

Estonia reported the highest annual inflation rate in the euro area in July 2025, at 5.6%, according to flash estimates from Eurostat.

Other countries to report an above-average annual inflation rate in the period, according to the estimates, included Croatia (4.5%), Slovakia (4.5%) and Latvia (3.9%).

Annual inflation in the euro area was estimated at 2.0% in July, according to Eurostat estimates, with food, alcohol, and tobacco prices expected to have risen the most, with an annual increase of 3.3%, up from 3.1% in June.

Other notable components of inflation include services, prices of which are estimated to have increased by 3.1% in July, a decrease from the 3.3% recorded the previous month, while the price of non-energy industrial goods rose by 0.8%, compared to 0.5% in June.

Energy prices remained in negative territory, with prices falling by 2.5%, compared to a 2.6% decline in June.

Month-on-month increase

On a month-on-month basis, inflation in the euro area was flat, with food, alcohol, and tobacco seeing a monthly rise of 0.3%, while services increased by 1.0%. Energy prices were up 1.0% on a month-on-month basis, while prices of non-energy industrial goods declined by 2.4%.

Countries to see the biggest month-on-month increases in inflation in July 2025 included Croatia (1.2%), the Netherlands (1.0%), Estonia (0.6%) and Malta (0.4%).

Several countries also reported a month-on-month decline in inflation, led by Italy (-1.0%), followed by Belgium (-0.8%), Portugal (-0.4%) and Spain (-0.4%).

Eurostat‘s full inflation data for July 2025 will be published on 20 August. Read more here.

Month-on-Month Inflation Change by EU Member State – July 2025 (%)

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