Eurozone Inflation Hits 2.9% Amid Energy Price Surge

The Eurozone's annual inflation rate rose to 2.9% in July 2026, matching market expectations and remaining above the European Central Bank's 2.0% target.

The increase was largely driven by a surge in energy prices, which accelerated to 10.0% from 8.5%, following renewed hostilities between the US and Iran.

Underlying price pressures also strengthened, with services inflation edging up to 3.3% from 3.2% and non-energy industrial goods rising to 0.9% from 0.7%.