Eurozone Inflation Surges to 2.9% Amid Oil Price Spike

The annual inflation rate in the Eurozone has accelerated to 2.9% in July, up from 2.8% in June, according to the European Union's statistical agency Eurostat.

The main driver of this increase was a surge in oil prices due to the breakdown of the US-Iran truce, which led to a 10% rise in energy costs across the region.

France and Spain recorded the largest price increases, while core inflation and service costs also showed acceleration.

The uptick in inflation has sparked expectations that the European Central Bank (ECB) will continue to tighten monetary policy by raising interest rates at its September meeting.