Eurozone Inflation Accelerates to 2.9% Amid Rising Energy Costs

Europe's inflation rate accelerated in July, rising to 2.9% from 2.8% in June, according to a flash estimate from Eurostat. Energy prices increased by 10% year-over-year, while services rose 3.3%. The renewed conflict in the Middle East contributed to higher energy costs.

The highest inflation rates were recorded in Lithuania (5.6%), Bulgaria (4.1%), Cyprus (4.0%), Spain (3.8%), and Croatia (3.6%). At the lower end of the spectrum, Estonia reported an annual inflation rate of 2.0%, followed by Malta (2.1%), France (2.4%), Latvia (2.5%), Austria (2.6%), and Finland (2.6%).

In contrast to June's slowdown, many countries saw a sharp monthly increase in consumer prices. The Netherlands experienced the largest month-over-month increase at 1.5%, followed by Germany (0.9%), France (0.6%), Croatia (0.6%), Malta (0.6%), Estonia (0.5%), and Bulgaria (0.4%).