Energy Prices Fuel Eurozone Inflation Rise

Eurozone inflation rose slightly in July due to increasing energy prices caused by the war in the Middle East. The consumer price index accelerated to 2.9 percent this month from 2.8 percent in June, according to data released by Eurostat.

Although the figure is above the European Central Bank's two-percent target, it was in line with predictions made by analysts for Bloomberg. ECB chief Christine Lagarde warned that the energy shock from the US-Iran war could intensify further.

The ECB kept its key deposit rate unchanged on July 23 but opened the door to a rise in September due to the ongoing conflict in the Middle East.