Eurozone Inflation Hits 2.9% Amid Rising Energy Costs
The European Central Bank is closely watching inflation in the eurozone as it continues to balance price stability against economic growth. According to data from Eurostat, annual inflation rose to 2.9% in July, up from 2.8% in June. Energy prices saw the largest increase, rising by 10% year-on-year compared to a 8.5% increase in June.
The services sector also experienced higher inflation, with prices increasing by 3.3%. On the other hand, food price inflation slowed down to 1.2%, and core inflation, which excludes energy and food, reached 2.5% on an annual basis.
Among eurozone countries, France, Malta, and Estonia had the lowest inflation rate at 2%, while Lithuania recorded the highest rate at 5.6%. The ECB is set to continue monitoring price developments as it maintains its key interest rates unchanged.