Eurozone inflation has stabilized at 2% for July, marking six consecutive months of 2.3% or less. A strong Euro has made imports cheaper, while declining energy prices have dampened inflationary pressures. The European Central Bank has lowered interest rates to 2% in hopes of stimulating economic growth, which remains sluggish at 0.1% for Q2. However, the recent imposition of 15% tariffs on EU goods exported to the US could increase prices and heighten inflation concerns, leading to a cautious approach from the ECB regarding future rate cuts.
Prices remain stable in the Eurozone as inflation came in at 2% for July, the sixth consecutive month where year-on-year inflation has been 2.3% or less.
A strong Euro throughout 2025 has made imports cheaper, combining with declining energy prices to dampen inflationary pressures.
The imposition of 15% tariffs on EU goods exported to the US threatens a darker outlook for the Eurozone economy.
The ECB has played its hand well so far. It has calmed inflation and at the same time lowered interest rates to give the economy the best chance of growth.
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