Global Inflation Diverges in July 2026: Argentina and Kyrgyzstan Rise as Croatia, Romania, and Israel Cool

July 2026 delivered sharply divergent inflation outcomes across global economies, with some countries seeing renewed upward pressure while others recorded significant easing. Here is a country-by-country breakdown based on confirmed data from national statistics agencies and official sources.

Argentina: Monthly Inflation Edges Up to 2.1%

Argentina's monthly inflation rate rose to 2.1% in July, up from 1.9% in June and slightly above analyst expectations of 2.0%. On an annual basis, inflation edged up to 33.8% from 33.5%, according to data from the national statistics agency INDEC . The modest acceleration breaks a period of gradual deceleration, though the central bank projects year-end inflation at 29.8% with economic growth of 2.7% .

Kyrgyzstan: Annual Rate Hits 11.5%, Highest Since March 2023

Kyrgyzstan's annual inflation climbed to 11.5% in July, up from 11.0% in June and marking the highest level since March 2023 . Price increases accelerated across several categories, notably clothing and footwear (8.0%), housing and utilities (11.2%), and restaurants and hotels (29.2%) . The National Bank of Kyrgyzstan responded by holding its key interest rate at 12% in late July, maintaining tight monetary conditions to guide inflation toward its medium-term 5%–7% target . The Asian Development Bank has revised its 2026 inflation forecast for Kyrgyzstan to 11.2%, citing strong domestic demand and external pressures .

Botswana: Confirmed Drop to 9.4% in July

Botswana's annual inflation rate fell sharply to 9.4% in July, according to the official press release from Statistics Botswana published on August 14, 2026 . The rate was down from 10.7% in June — which had been unchanged from May and at its highest since December 2022 . July's reading showed notable differences by region: inflation in cities and towns was 9.0%, in urban villages 9.4%, and in rural villages 10.1% . Imported tradable inflation stood at 13.3%, while non-tradable inflation was 5.6% . The earlier reported figure of 10.7% reflected pre-release expectations; the confirmed July data from the official statistical agency shows the decline.

Croatia: Easing to 3.9%, Lowest Since February

Croatia's annual inflation slowed to 3.9% in July, down from 4.5% in June, marking the lowest reading since February 2026 and confirming preliminary estimates . Price growth moderated for alcoholic beverages and tobacco (3.7% vs 7.1% in June), health (4.9% vs 5.2%), and transport (8.2% vs 8.6%) . However, housing and utilities costs continued to rise sharply at 12.2% . On a harmonized EU basis, Croatia's inflation was 3.6%, still 1.6 percentage points above the ECB's 2% target .

Romania: Sharp Drop to 8.2% on Electricity Moderation

Romania's annual inflation rate fell to 8.2% in July, a steep decline from 10.4% in June and the lowest reading since July 2025 . The drop was largely driven by a sharp moderation in electricity price growth — from 35.2% in June to just 2.9% in July — which pulled down the non-food goods inflation rate from 12.3% to 7.9% . Food inflation also eased to 5.0%, while services inflation held steady at 13.7% . The National Institute of Statistics reported that the CPI in July was 0.58% higher month-on-month .

Israel: Falls to 1.5%, Lowest Since May 2021

Israel's annual inflation rate eased to 1.5% in July, down from 1.6% in June and below market expectations of an unchanged reading . That marks the lowest inflation rate since May 2021 and keeps price growth comfortably within the Bank of Israel's 1%–3% target range .

Canada: Expected Uptick to 2.9% on Gasoline

Canada's official July CPI reading had not yet been released as of August 14, 2026 — the next scheduled release from Statistics Canada is August 17 . However, a Reuters poll of economists expects annual inflation rose one-tenth to 2.9%, driven by a rebound in gasoline prices . Economists at Royal Bank of Canada noted that while gas prices remain below their April 2026 peaks, the month-over-month increase is enough to push headline inflation higher . Prices at the pump were 25% higher in July than a year ago, compared with a 20% annual hike in June .

Summary of the Mixed Picture

• Upward pressure: Argentina (modest monthly rise to 2.1%, annual 33.8%), Kyrgyzstan (accelerating to 11.5%), Canada (expected uptick to 2.9% on gasoline)
• Downward pressure: Croatia (easing to 3.9%), Romania (sharp 2.2 percentage point drop to 8.2%), Israel (falling to five-year low of 1.5%), Botswana (confirmed decline from 10.7% to 9.4%)

The data underscores that global disinflation is proceeding unevenly, with energy costs, domestic demand, and external shocks creating very different outcomes across economies.