Eurozone Inflation Rate Rises to 2.6% in July

The inflation rate in the eurozone rose to 2.6% year-on-year in July, a marginal increase from June's rate, according to Eurostat. In the broader European Union, inflation rebounded to 2.8%, reflecting a two-tenths rise from the previous month. This uptick in inflation is primarily attributed to a 1.2% increase in energy costs, which had previously seen a minimal rise of 0.2% in June. Fresh food prices also contributed, rising by 1% annually, although this was a decrease from the previous month. In addition to energy and food, non-industrial energy goods saw a consistent price increase of 0.7% in July, mirroring June's figures. Services experienced a 4% annual rise, slightly lower than June's increase. When excluding energy costs, the inflation rate moderated to 2.7%, down from 2.8% in June. The underlying inflation rate, which excludes food, tobacco, and alcohol, remained stable at 2.9% for the third consecutive month. Among the EU's 27 member states, inflation trends varied significantly. Nine countries reported a decrease in annual inflation compared to June, while fourteen saw increases. Finland recorded the lowest inflation rate at 0.5%, while Romania had the highest at 5.8%. In Spain, inflation was reported at 2.9% in July, a notable decrease that reduced the price differential with the eurozone.