Eurozone Inflation Edges Up Amid Middle East Energy Crisis

The Eurozone's inflation rate edged up in July due to rising energy prices caused by the ongoing conflict in the Middle East. According to data released on July 31, consumer price growth accelerated to 2.9 percent this month from 2.8 percent in June.

This figure remains above the European Central Bank's (ECB) target of two percent and comes after ECB chief Christine Lagarde warned that the energy shock from the US-Iran war could intensify further. The ECB kept its key deposit rate unchanged on July 23 but left the door open for a potential increase in September as prices continue to rise.

Energy prices rose by 10 percent in July, up from 8.5 percent in June, while core inflation, which strips out volatile energy and food prices, accelerated slightly to 2.5 percent in July after slowing to 2.4 percent last month.