استقرار معدل التضخم في منطقة اليورو عند مستوى 2%

The inflation rate in the Eurozone has stabilized at 2%, which is the target level for the European Central Bank, supporting the position of bank officials who see no reason to lower interest rates again.

The European statistics agency (Eurostat) reported today (Friday) that the consumer price index rose by 2% last month, the same rate of increase as the previous month, while analysts surveyed by Bloomberg had expected the rate to decline to 1.9%.

At the same time, the core inflation rate, which excludes the most volatile items like food and energy, rose to 2.3% in July, while the inflation rate for services fell to its lowest level since early 2022, according to DPA.

The Eurostat report confirms how the price shock that began during the pandemic continues to fade, and the European Central Bank is confident that inflation has been largely contained, having cut interest rates 8 times over the course of a year to a level that no longer constrains or stimulates growth.

With inflation remaining around the target level and the economy holding up so far against U.S. tariffs, many officials have indicated that they see no strong justification for continuing the monetary easing campaign pursued by the European Central Bank. Investors also see the likelihood of a new European rate cut as less than 50%.

Irish Central Bank Governor Gabriel Makhlouf said this week: “We have reached a point in the monetary easing cycle where we can wait to see if the data and evidence suggest a need to change our stance on monetary policy.”

It is unlikely that the mixed national reports from the 20 member states of the euro area will change this view.