Key facts
- Euro zone inflation increased to 2.9% in July from 2.8% in June.
Euro zone inflation ticks up in July, bolstering rate hike case
IN SHORT
Euro zone inflation rose to 2.9% in July from 2.8% in June, driven by higher oil prices. Underlying inflation also accelerated, strengthening the case for another European Central Bank interest rate hike despite economic growth exceeding expectations.
Key Numbers
2.9%Euro zone inflation rate in July
2.8%Euro zone inflation rate in June
2.5%Underlying inflation rate in July
2.4%Underlying inflation rate in June
3.3%Services inflation rate in July
0.4%Euro zone economic growth in Q2
Who's Involved
European Central Bank
Signaling a likely interest rate hike
Eurostat
Released July inflation data
↳ Why This Matters
The rise in Eurozone inflation, particularly in underlying measures, increases the probability of further interest rate hikes by the European Central Bank, which could impact economic growth and borrowing costs across the bloc.