Eurozone Inflation Edges Up to 2.9 Percent in July on Energy Price Pressure

The eurozone's annual inflation rate is expected to edge up to 2.9 percent in July from 2.8 percent in June, according to a flash estimate released by Eurostat on Friday.

The increase was mainly driven by renewed energy price pressure, with energy prices rising 10.0 percent year-on-year in July, up from 8.5 percent in June.

Bert Colijn, ING's chief economist for the Netherlands, noted that fuel prices rose sharply in July, but their impact on the month's inflation figure was relatively modest due to the month beginning while the U.S.-Iran memorandum of understanding was still in place.

Colijn warned that inflation could rise significantly in August if oil prices remain around their current levels, adding that the uptick in core inflation reflected both goods and services inflation trending slightly higher.