Inflation differentiation hides surface stability, internal differences increase Difficulty in European Central Bank interest rate decisions.

date
10/08/2025
According to the Wisdom Financial APP, for European Central Bank officials celebrating stable prices in the euro area, one point worth noting is that the 2% inflation rate is only a relative concept. Although the euro area's inflation rate in July remained at the target level of 2%, only Finland's inflation rate reached this target. In other 19 euro area countries, some countries' inflation rates have hardly increased, while some countries' inflation rates exceed 2% and are nearly three times the 2% target level. Data shows that the top three economies in the euro area - Germany, France, Italy, as well as Ireland and Cyprus had inflation rates below 2% in July, while the inflation rates of the remaining 14 countries were above 2%.