Eurozone Inflation Hits 2.9% in July as 10% Energy Surge Revives Price Pressures
Updated
Updated · Euronews · Jul 31
Eurozone Inflation Hits 2.9% in July as 10% Energy Surge Revives Price Pressures
3 articles · Updated · Euronews · Jul 31
Summary
Eurostat’s flash estimate showed eurozone consumer inflation rose to 2.9% in July from 2.8% in June, while core inflation edged up to 2.5%, ending June’s brief slowdown.
Energy prices jumped 10% year on year after renewed Middle East conflict, with services up 3.3%, reinforcing concerns that imported energy costs could keep headline inflation sticky above 2.5%.
Across member states, Lithuania posted the highest annual inflation at 5.6%, while Estonia had the lowest at 2.0%; Germany accelerated to 2.8% and Italy matched the bloc average at 2.9%.
Monthly price moves diverged sharply, with the Netherlands up 1.5% from June and Germany up 0.9%, while Greece fell 1.4% and Italy dropped 1.0%.
Markets stayed risk-on after the data: the euro firmed to 1.1520, the DAX 40 rose about 0.8% to a record above 25,800, and traders increasingly expect one more 25-basis-point ECB rate hike.