Euro-Area Flash Inflation Hits 2.9%, Energy Costs on the Rise

The euro-area flash inflation rate accelerated to 2.9% in July, driven by higher energy prices.

This represents a marginal increase from June's 2.8%, and consensus expectations were met.

The recent rise in oil and gas prices has led to a significant increase in energy inflation, with the annual rate rising from 8.5% to 10.0% in July.

This uptick in energy costs increases the risk of second-round effects, which may prompt the ECB to raise interest rates again in September.