Close Menu
    The Brunei DailyThe Brunei Daily
    • Automotive
    • Business
    • Entertainment
    • Health
    • Lifestyle
    • Luxury
    • News
    • Sports
    • Technology
    • Travel
    The Brunei DailyThe Brunei Daily
    Home » Inflation climbs in euro area driven by services sector
    Business

    Inflation climbs in euro area driven by services sector

    July 18, 2025
    Facebook WhatsApp Twitter Pinterest LinkedIn Telegram Tumblr Email Reddit VKontakte

    Annual inflation in the euro area increased to 2.0 percent in June 2025, rising slightly from 1.9 percent recorded in May, according to data released by Eurostat, the statistical office of the European Union. This marks a continued moderation compared to the inflation rate of 2.5 percent registered in June 2024.

    Across the broader European Union, the annual inflation rate reached 2.3 percent in June 2025, up from 2.2 percent the previous month. In June 2024, the Euro area inflation rate had been slightly higher at 2.6 percent. These figures indicate a general stabilization of inflation levels within the euro area and the wider EU over the past twelve months, despite minor monthly fluctuations.

    Eurostat’s latest report highlights notable disparities in inflation rates among EU member states. The lowest annual inflation rates in June 2025 were observed in Cyprus at 0.5 percent, followed by France at 0.9 percent and Ireland at 1.6 percent. In contrast, the highest annual inflation rates were recorded in Romania at 5.8 percent, Estonia at 5.2 percent, and both Hungary and Slovakia at 4.6 percent.

    Euro area inflation rises to 2.0 percent as services and food costs climb

    These figures reflect the ongoing economic divergence within the European Union, particularly between Western and Eastern member states. Compared with May 2025, annual inflation fell in only five member states, while twenty-two experienced an increase. This trend suggests persistent inflationary pressures in the majority of EU countries, albeit at varying levels.

    The continued rise in prices in several Eastern European economies remains a significant factor contributing to the overall inflation figures within the bloc. Eurostat’s breakdown of inflation components shows that the services sector was the primary driver of inflation within the euro area in June.

    Services contributed 1.51 percentage points to the annual inflation rate, indicating their significant influence on overall price levels. Food, alcohol, and tobacco followed with a contribution of 0.59 percentage points. Non-energy industrial goods added a modest 0.13 percentage points, while the energy sector made a negative contribution of 0.25 percentage points, reflecting declining energy prices in the region.

    Eurostat reports steady inflation gains despite falling energy prices

    The data underscores the mixed inflationary environment within the euro area, with core sectors such as services and essential goods exerting upward pressure, while energy prices continue to provide a moderating effect. Policymakers at the European Central Bank are expected to monitor these trends closely as they assess the future trajectory of interest rates and other monetary policy tools aimed at maintaining price stability.

    Eurostat’s inflation figures provide an important barometer for assessing the health of the Euro zone economy as it continues to recover from recent economic shocks. The balance between growth and inflation will likely remain a key focus for economic decision-makers in the months ahead. – By EuroWire News Desk.

    Related Posts

    South Korea inflation quickens to 3.1% as costs climb

    September 3, 2026

    Korea’s August exports jump 68.7% to $98.25 billion on chips

    September 2, 2026

    India GDP grows 7.8% as Modi hails resilient economic growth

    September 2, 2026

    Nikkei drops as Japan bond yields hit three-decade highs

    September 1, 2026

    Indonesia links sports investment to new licensing framework

    August 31, 2026

    Oil prices rebound after Brent slides below $93

    August 25, 2026
    Latest News

    South Korea inflation quickens to 3.1% as costs climb

    September 3, 2026

    SEJONG, SOUTH KOREA / RankWire.AI / – South Korea’s consumer prices rose 3.1% in August from a year earlier, official data showed. The increase accelerated from 2.8% in July and returned headline inflation…

    Japan deploys AI to detect investment fraud earlier

    September 3, 2026

    Korea’s August exports jump 68.7% to $98.25 billion on chips

    September 2, 2026

    India-Russia ties lead Modi-Putin talks at SCO summit

    September 2, 2026

    Egypt and China mark 70 years during Xi Jinping visit

    September 2, 2026

    India GDP grows 7.8% as Modi hails resilient economic growth

    September 2, 2026

    China digital industry revenue reaches 20.71 trillion yuan

    September 1, 2026

    Lionel Messi retires from Argentina after 21-year record run

    September 1, 2026
    © 2026 The Brunei Daily | All Rights Reserved
    • Home
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.