Eurozone Inflation Hits 2.9 Percent Amid Energy Price Pressures

The eurozone's annual inflation rate edged up to 2.9 percent in July from 2.8 percent in June, according to a flash estimate by Eurostat.

The increase was driven mainly by rising energy prices, which are expected to jump 10.0 percent year-on-year in July, up from 8.5 percent in June.

Servcies inflation also rose to 3.3 percent from 3.2 percent a month earlier, while food, alcohol and tobacco prices increased by 1.2 percent year-on-year, down from 1.5 percent in June.

Inflation rates rose in three of the eurozone's largest economies: Germany's rate increased to 2.8 percent from 2.4 percent in June, France's to 2.4 percent from 2.0 percent, and Spain's to 3.8 percent from 3.6 percent.

Lithuania posted the highest annual inflation rate at 5.6 percent, while Estonia had the lowest at 2.0 percent.