Eurozone inflation holds steady at 2 pct in July, despite regional variations
FRANKFURT, Aug. 1 (Xinhua) -- Inflation in the euro area is expected to stand at 2 percent in July, as rising prices in some categories were offset by a 2.5 percent drop in energy prices, Eurostat, the statistical office of the EU, announced on Friday.
Prices of food, alcohol and tobacco hiked in July at a faster pace than June with an increase of 3.3 percent. Prices of services soared by 3.1 percent, slightly down from 3.3 percent in the previous month. Non-energy industrial goods also saw a modest increase of 0.8 percent.
Inflation in some of the largest European economies turned out to be lower than 2 percent, with 1.8 percent in Germany, 1.7 percent in Italy and 0.9 percent in France. In contrast, Estonia recorded the highest inflation rate at 5.6 percent, followed by Croatia and Slovakia, both at 4.5 percent, according to Eurostat.
According to a separate report from the Croatian Bureau of Statistics (CBS), Croatia's annual inflation rate rose to 4.1 percent in July. Key drivers included a 6.6 percent increase in prices for food, beverages, and tobacco, and a 5.7 percent rise in service costs. This marks the third consecutive month of rising inflation in Croatia.
Croatian Deputy Prime Minister and Finance Minister Marko Primorac stated that the government expects the average annual inflation rate for 2025 to be around 3 percent, with inflation projected to slow toward the end of the year.
The euro area inflation has been hovering around 2 percent since February this year with some minor fluctuations, according to Eurostat. This aligns closely with the European Central Bank (ECB)'s inflation target.
However, Bert Colijn, chief economist for the Netherlands at ING, cautioned that the streak is unlikely to continue for long.
The ECB noted in a statement released last month that longer-term inflation expectations remain near its 2 percent target, reflecting market confidence in its price stability mandate.
The ECB put interest rates on hold at its July rate-setting conference as the 2 percent inflation rate puts the central bank "in a good place."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Canada News.Net
15 hours ago
- Canada News.Net
US, European stock markets tumble on Trump's tariff move; Amazon & Apple shares face heavy selling
New Delhi [India], August 2 (ANI): US stock markets faced heavy selling pressure on Friday (local US time) after President Donald Trump implemented fresh reciprocal tariffs on 70 countries, including India. The new tariffs have raised fears of rising inflation in the US, as imports will become more expensive and prices of goods sold in the country are expected to rise in the coming months. The major US stock indices witnessed sharp declines. The Dow Jones Industrial Average fell by over 1.2 per cent to close at 43,588.58, down by 542.40 points. The S&P 500 also dropped by 1.6 per cent, losing 101 points to settle at 6,238. The tech-heavy Nasdaq index tanked more than 2.2 per cent, falling by 472 points to close at 20,650. Several major US companies saw their share prices tumble. Amazon Inc. shares on the Nasdaq declined sharply by 8.27 per cent. Shares of tech giant Apple also dropped by 2.5 per cent, reflecting broad-based selling across the technology sector. In a major development, President Trump abruptly fired Dr. Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS). Trump accused her of releasing 'fake' jobs data ahead of the 2024 US Presidential Election in an attempt to support Vice President Kamala Harris. In a social media post, Trump said, 'I was just informed that our Country's 'Jobs Numbers' are being produced by a Biden Appointee, Dr. Erika McEntarfer, the Commissioner of Labor Statistics, who faked the Jobs Numbers before the Election to try and boost Kamala's chances of Victory. This is the same Bureau of Labor Statistics that overstated the Jobs Growth in March 2024 by approximately 818,000 and, then again, right before the 2024 Presidential Election, in August and September, by 112,000.' Trump added, 'These were Records -- No one can be that wrong? We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified.' The panic in global markets extended to Europe as well. Germany's DAX index dropped by more than 2.7 per cent, while France's CAC index fell by 2.99 per cent, showing heavy selling pressure across European markets too. Investors remain concerned over the uncertainty triggered by Trump's tariff move and the possible economic consequences it could bring. (ANI)
Canada News.Net
15 hours ago
- Canada News.Net
Interview: Spanish economist says EU gains little from new tariff deal with U.S.
European leaders handled the trade deal with the United States "too weakly," said a Spanish economist, noting that the EU has tools to counter U.S. pressure. BARCELONA, Spain, Aug. 3 (Xinhua) -- The European Union (EU) has little to gain from its new trade deal with the United States, with Germany likely to be the bloc's biggest loser, Sergi Basco, associate professor of Economics at Barcelona University, told Xinhua recently. Basco said the "only positive outcome for Europe" in the deal, under which the United States will impose a baseline 15 percent tariff on EU goods while many U.S. exports to Europe face no tariffs, is that "instead of 30 percent, it is 15 percent." He noted that Germany will probably "lose the most," as it is the EU's largest exporter to the United States. The tariffs will "likely cause the sales of German cars to the United States to go down," and hurt Spain's automotive industry as well, "because many of the vehicles Germany sells use components made in Spain," Basco added. Basco criticized European leaders for handling the trade deal "too weakly," noting that the EU has tools to counter U.S. pressure. "I don't know if it's because the negotiations were hampered by there being different voices, but it seems to me that their reaction was weak," he said. Meanwhile, Basco cautioned that it is "important" to note that the trade deal is "a non-binding agreement," citing a European Commission statement stressing that the two sides "will further negotiate, in line with their relevant internal procedures, to fully implement the political agreement." He noted that European Commission President Ursula von der Leyen described the trade deal as a "framework," adding that the agreement will need approval from all 27 EU member states, whose ambassadors are set to meet on Monday.
Canada News.Net
15 hours ago
- Canada News.Net
Xinhua Headlines: Chancay Port opens Inca Trail of New Era toward shared prosperity between China, Latin America
* The construction of the Port of Chancay, launched in 2021, is creating a maritime gateway to Asia and beyond, revitalizing the city's economy and strategic significance. * Unlike the old imperial roads, which served mostly the elite, the Chancay Port is designed to benefit broader populations -- creating jobs, speeding trade, and positioning Peru as a regional logistics hub. * Extending the ancient Inca spirit of connection into the 21st century, Chancay is forging a new land-sea corridor across the Pacific, linking Latin America with Asia and heralding a new chapter of shared prosperity. by Meng Yifei and Zhu Yubo LIMA, Aug. 3 (Xinhua) -- More than 500 years ago, the legendary Inca Trail stretched from Cusco across the Andes, linking far-flung territories and fostering political, economic, and cultural integration across the vast Inca Empire. Today, on Peru's Pacific coast, Chancay Port is becoming a starting point of an Inca Trail of the New Era -- a maritime gateway linking Latin America with Asia. In the first five months of 2025 alone, trade through the Chancay Multipurpose Port Terminal surpassed 777 million U.S. dollars. Peru's President Dina Boluarte said in June that the project is expected to lift GDP by 1.8 percentage points -- roughly 4.5 billion dollars -- and create some 7,000 jobs. As a 21st-century smart port, Chancay Port is deepening cooperation between China and Latin America, advancing connectivity and shared prosperity across continents. FROM SACRED PATH TO SMART PORT In the 15th century, the Inca Empire extended across much of South America, encompassing territories that today make up Peru, Colombia, Ecuador, Bolivia, Chile and Argentina. At the heart of this vast realm was the Qhapaq Nan, or "sacred path" -- a sprawling network of stone roads that linked the empire's four regions and connected its capital, Cusco, with distant frontiers. "These routes already existed before the Inca expansion," said Rafael Varon Gabai, director of Peru's National Museum of Archaeology, Anthropology, and History. "But they were integrated and perfected with bridges and infrastructure that enabled trade, communication and cultural exchange." In 2014, the Qhapaq Nan was recognized as a UNESCO World Heritage Site, a testament to its enduring legacy. North of Lima, the city of Chancay echoes Peru's rich history. Between 1100 and 1400 AD, the Chancay civilization thrived along this stretch of coast, developing sophisticated agricultural systems and urban settlements in the Chancay and Chillon valleys. Today, the ancient landscape is experiencing a new transformation. The construction of the Port of Chancay, launched in 2021, is creating a maritime gateway to Asia and beyond, revitalizing the city's economy and strategic significance. "Until recently, large-scale industrial or commercial activity was practically nonexistent," said Nilo Miranda, president of the Chancay Chamber of Commerce, Industries and Tourism. He hopes the city of Chancay will seize this historic opportunity to become the "Andean pearl" of the new era, just as the Oriental Pearl Tower came to symbolize Shanghai's rise. This Pacific-facing port is more than an infrastructure project -- it stands as a modern echo of the ancient sacred paths. Extending the ancient Inca spirit of connection into the 21st century, Chancay is forging a new land-sea corridor across the Pacific, linking Latin America with Asia and heralding a new chapter of shared prosperity. A NEW CORRIDOR ACROSS PACIFIC The new maritime route has shortened Asia-bound shipping times from 33 days to just 23. "Since the inauguration of the Port of Chancay, we have been receiving an average of 400 containers per month from China," said Mayra Huillca, coordinator of the foreign trade department at Indurama, a company that imports Chinese-made home appliances for the Latin American market. "Currently, we sell 50 percent more than before." Neighboring countries are also reaping benefits. Ecuador's banana exports to China jumped 45.56 percent in the first five months of 2025, according to the Ecuadorian Banana Marketing and Export Association (Acorbanec). "The logistics aspect greatly helps Ecuadorian banana exports," said Acorbanec CEO Richard Salazar. "The presence of COSCO Shipping Lines has also made the route faster and more direct." Where the ancient Inca Trail once connected much of South America by land, the Port of Chancay is forging a broader, modern land-sea corridor between Asia and Latin America. Unlike the old imperial roads, which served mostly the elite, the Chancay Port is designed to benefit broader populations -- creating jobs, speeding trade, and positioning Peru as a regional logistics hub. "This port, in my view, represents the renewal of the Inca Trail," said Luis Vasquez, president of the Foundation for the Development of Science and Culture at the National University of San Marcos in Lima. LIVING HERITAGE Once a key site in the Inca Empire, Chancay's legacy now converges with 21st-century innovation. Since its launch in 2021, Chancay Port has become Latin America's first green, smart port, operating 24/7 with automated gantry cranes, low-carbon vehicles and real-time AI-driven logistics. Fully powered by clean energy, it ensures sustainable, carbon-free operations. "We're improving efficiency, safety and emergency response as we evolve towards a modern, sustainable model," said He Bo, executive deputy general manager of COSCO Shipping Ports Chancay Peru. But the port's impact extends beyond cutting-edge technology to serve as a powerful engine for economic growth. During a recent visit to the site, Xinhua journalists observed young, skilled workers operating robotic arms and managing automated systems -- a vivid sign of the country's growing role in high-tech logistics. Chancay has evolved from a historical site into an emerging symbol of modern development. "Shipping lines, commercial vision and connectivity open up an enormous range of possibilities for trade and development," said Gonzalo Rios Polastri, deputy general manager of COSCO Shipping Ports Chancay Peru. STRONGER BONDS ACROSS CULTURES Beyond trade, Chancay Port is also a bridge of cultural exchange. "In Peru, Chinese people are often affectionately called paisanos," said Varon. Peru's Congress has even declared Feb. 1 as Peru-China Fraternity Day. Chinese-Peruvian fusion restaurants, known as "chifas," are a hallmark of Peru's urban landscape. "Half of the port workers come from the Chancay area," said Rios. "Many young locals, after training, have become skilled operators of smart equipment." Peruvian and Chinese employees work side-by-side, with relationships forged outside of work. "Many Chinese staff already consider Peru their second home," Rios added. In 2024, Cusco's Inka Museum hosted Sunlight: Cultural Exchange Exhibition between the Ancient Shu and Inca Civilizations, receiving nearly 8,000 visitors. "For the first time, Chinese artifacts arrived in Cusco and were displayed alongside Inca relics," said Julinho Zapata, the museum's director. "The artifacts communicated with each other." "It was truly transcendental," added Eleazar Crucinta, rector of the National University of San Antonio Abad in Cusco. "People finally saw Chinese culture not in books or images, but in person."
