In July 2020, a month in which COVID-19 containment measures continued to be lifted, Euro area annual inflation is expected to be 0.4%, up from 0.3% in June according to a flash estimate from Eurostat, the statistical office of the European Union.
Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in July (2.0%, compared with 3.2% in June), followed by non-energy industrial goods (1.7%, compared with 0.2% in June), services (0.9%, compared with 1.2% in June) and energy (-8.3%, compared with -9.3% in June).
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