July Inflation Rise Only a Modest Blip for Eurozone

Eurozone inflation rose only modestly in July to 2.9%, despite rising energy prices and the ongoing Middle East conflict.

The increase from 2.8% is a relatively small step, but it's a sign that consumer prices are not immune to current developments, according to Bert Colijn, Chief Economist at the Netherlands.

Fuel prices climbed sharply in July, with average pump prices reaching their highest level since the conflict began.

The ECB remains on high alert and is likely to raise interest rates again in September under current conditions, as inflation continues to face upward pressure.