Eurozone Inflation Hits 2.9% in July Amid Iran War-Driven Oil Price Surge

The Eurozone's inflation rate rose to 2.9% in July, driven by high oil prices resulting from the Iran war.

This increase is expected to bolster the case for another European Central Bank interest rate hike, particularly as energy costs continue to rise.

Eurostat data showed that underlying inflation, which filters out volatile food and energy prices, accelerated to 2.5% in July from 2.4% in June, with services inflation rising to 3.3%.

The ECB has signaled a rate hike is coming, citing the economy's performance along its 'baseline' scenario, which included a rate hike on September 10.