Euro area inflation rose to 2.9% in July as core inflation unexpectedly climbed to 2.5%

Eurostat's flash estimate, published on Friday 31 July 2026, showed the euro area's annual inflation rate rose to 2.9% in July, up from 2.8% in June and in line with market expectations.

More significant for the European Central Bank's policy path was core inflation: the measure, which strips out food, energy, alcohol and tobacco, rose to 2.5% in July, both above June's 2.4% and above the 2.4% consensus. The euro area consumer price index also rose 0.2% month on month in July, moving from 103.02 to 103.22 points, after falling 0.1% in June.

The final July reading for euro area inflation is due on 19 August. The euro is one of the most actively traded currencies in Tehran's open market, and the ECB's rate path feeds through to the euro/dollar rate.