Eurozone Inflation Hits 2.9% as ECB Prepares Rate Hike

The Eurozone inflation rate rose to 2.9% in July from 2.8% a month earlier, driven by an Iran war-induced oil price surge.

This increase is in line with expectations and bolsters the case for another European Central Bank interest rate hike, especially as high oil prices foreshadow further broadening of price pressures.

Underlying inflation, which filters out volatile food and energy prices, accelerated to 2.5% from 2.4%, while services inflation rose to 3.3%.