Euro Area Inflation Hits 2-Year High as Energy Costs Soar

Inflation in the Euro Area has worsened, according to recent data from Haver Analytics. Headline inflation rose by 0.5% month-to-month in July after prices fell by 0.1% in June.

Core inflation also increased, rising by 0.3% in July after a 0.1% gain in June. This represents a steady uptick in core inflation.

The data shows that inflation accelerated in over 84% of categories on a month-to-month basis in July. In contrast, just 15% of categories experienced accelerating inflation in June, down from 46% in May.

Looking at longer-term trends, inflation rates over 12 months are higher than they were 12 months ago in 69% of categories, and core inflation is also above target at 2.5%.