Inflation Inflation in the eurozone rises slightly to 2.6 percent
Inflation in the eurozone increased in July as expected. Consumer prices rose by 2.6 percent compared to the same month last year, according to a second estimate released by the statistical office Eurostat in Luxembourg on Tuesday.
20.08.2024, 15:20
SDA
This confirmed an initial survey. In July, the inflation rate was 2.5 percent. After inflation tended to weaken last year, in some cases significantly, inflation has proved to be stubborn in recent months. According to Eurostat, consumer prices have not changed month-on-month.
Core inflation, which excludes volatile prices for energy, food and beverages, remained stable at 2.9% in July. Core inflation reflects underlying inflation and, in the opinion of many economists, better reflects the inflation trend than the overall rate.
The strongest price drivers were services. Eurostat reported an increase of 4.0% year-on-year. In addition, energy prices rose much more sharply in July than in the previous months.
In June, the European Central Bank (ECB) cut interest rates for the first time since the major wave of inflation. At the interest rate meeting in July, the monetary authorities kept key interest rates stable and made it clear that future interest rate moves would depend on the development of economic data. The financial markets expect the ECB to cut interest rates again in September.
