01.08.2025 09:13

Eurozone inflation remained stubbornly at 2% in July 2025, according to preliminary data released by Eurostat on Friday, defying economists' projections. A Reuters poll had predicted a slight dip to 1.9%, following June's identical 2% figure. This unexpected persistence of inflation contrasts sharply with earlier forecasts.


This news follows the announcement of surprisingly robust economic growth in the Eurozone during the second quarter. The economy expanded by 0.1%, exceeding expectations despite representing a significant slowdown from the 0.6% growth witnessed in the preceding quarter. This resilient performance, analysts suggest, demonstrates a degree of fortitude in the face of ongoing trade tensions with the United States.


The recently finalized trade agreement between the European Union and the United States, which includes a 15% baseline tariff on EU goods entering the U.S. market, provides a complex backdrop to this economic picture. While sectoral tariffs and temporary reciprocal duty reductions already exist, the full economic consequences, including their impact on Eurozone growth and inflation, remain largely uncertain. Further, the anticipated burden on economic expansion from these duties is a major concern. The effect on consumer prices in the U.S. is also expected to be notable.


This is a developing situation, and further updates will be provided as they become available from internet sources.