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Euro area inflation confirmed higher in July as services and energy rose
July final CPI was 2.9% year over year, with services at 3.3% and energy inflation at 10.3%, keeping pressure on ECB policy in September.
Euro area inflation pressures ticked up in July, according to Forexlive, which cited final data showing headline CPI at 2.9% year over year, unchanged from the preliminary estimate and up from June’s 2.8%.
Core annual inflation also matched the preliminary reading at 2.5% year over year, but stayed above 2%, a level that Forexlive said leaves the ECB focused on the risk of second round effects.
In the breakdown, services inflation rose to 3.3% in July from 3.2% in June, while energy price inflation jumped to 10.3% from 8.5%. Food inflation eased to 1.2% from 1.5%, the data showed.
With the September ECB decision approaching, Forexlive said the numbers confirm inflation is still not fully under control and that the ECB is likely to hike again in September to better prepare for any need to raise rates further.