Eurozone Inflation Edges Higher Amid Soaring Energy Costs

July's inflation data for the Eurozone showed a slight increase in consumer prices, reaching 2.9% year-over-year, up from June's 2.8%. This rise is largely attributed to higher energy costs, which accelerated to 10% from 8.5%, while food inflation cooled and other categories edged upwards.

ING, a Dutch bank, warned that August's inflation could be significantly higher if oil prices stay near current levels, keeping markets on high alert for the European Central Bank's (ECB) next move in September.

The ECB meeting is still being treated as live, with traders focusing on whether the central bank will tighten policy again. Core inflation, which excludes energy, food, alcohol, and tobacco prices, rose to 2.5% from 2.4%, beating forecasts despite remaining flat month-over-month.