Eurozone Inflation Accelerates on Renewed Energy Price Growth

The Eurozone's consumer price inflation accelerated in July to 2.9% from 2.8% in June, according to preliminary estimates released by Eurostat on Friday.

This increase was largely driven by a 10% surge in energy prices, after easing to 8.5% growth in June. Food, alcohol and tobacco prices also rose, but at a slower rate of 1.2% year-on-year, down from 1.5% the previous month.

Excluding volatile food, alcohol, tobacco, and energy prices, core inflation increased to 2.5% from 2.4%. This was due in part to higher services inflation at 3.3%, up from 3.2% previously, as well as a rise in non-energy industrial goods price growth to 0.9%.