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Eurozone CPI final rises to 2.9% in July, core ticks up to 2.5%
Energy drove the biggest fresh upside, lifting its annual inflation rate to 10.3% from 8.5%, while services added 1.55 percentage points to the headline.
Eurozone inflation edged higher in July, with final headline CPI rising to 2.9% year over year from 2.8%, confirming the preliminary reading and keeping inflation well above the 2.0% level from a year earlier, according to Action Forex.
Core inflation also firmed, moving up to 2.5% from 2.4%, a sign that the latest increase was not purely an energy effect. ActionForex.com reports that across the wider EU, annual inflation rose from 2.9% to 3.0%.
Energy provided the largest new upward pressure, with annual inflation accelerating to 10.3% from 8.5% and contributing 0.94 percentage point to the headline rate. Services were described as the largest overall contributor, with annual growth edging from 3.2% to 3.3%, adding 1.55 percentage points, while food, alcohol and tobacco inflation slowed to 1.2% from 1.5%.
The report highlighted mixed monthly details, including energy prices up 2.7% month over month and services up 1.1%, alongside declines in non energy industrial goods and smaller monthly weakness in food, alcohol and tobacco. It also noted wide inflation dispersion across member states, from 0.3% in Sweden to 8.2% in Romania, and said the final July numbers reinforce the case for the ECB to maintain a restrictive stance, given sticky services and renewed energy risk.