Eurozone Inflation Spikes to 2.9% Amid Energy Price Increases

Europe's inflation slowdown proved short-lived as annual consumer price growth in the eurozone accelerated to 2.9% in July, up from 2.8% in June.

This marked a return to the pre-June pace of inflation and was in line with economists' expectations.

The renewed conflict in the Middle East drove energy costs higher, contributing to the acceleration in inflation.

Energy prices rose by 10% year-on-year, followed by services, which increased by 3.3%.

Lithuania recorded the highest inflation rate in the eurozone at 5.6%, while Estonia reported the lowest annual inflation rate at 2.0%.