Germany's Inflation Bump Hits European Stocks

European stocks dipped after Germany's inflation rate ticked up in July, led by higher energy and fuel costs.

The country's consumer prices were up 2.8% from a year earlier, faster than June's 2.3%, according to Destatis, the German statistics office.

Destatis President Ruth Brand pointed to energy as the main driver after a government fuel discount ended on June 30th.

The inflation print can reset expectations for the European Central Bank's next interest-rate cut, which could push short-term euro interest rates higher and lift the 'discount rate' used to value future corporate profits.