Eurozone July final inflation confirmed at 2.9%, core inflation rises to 2.5%

⑴ The Eurozone's final annual inflation rate for July was confirmed at 2.9%, higher than June's 2.8% and exceeding the European Central Bank's 2.0% target. The increase was mainly driven by another surge in energy prices, with energy inflation climbing from 8.5% to 10.3% following renewed US-Iran hostilities. ⑵ Underlying price pressures also intensified, with services inflation edging up from 3.2% to 3.3%, and non-energy industrial goods inflation rising from 0.7% to 0.9%. Food, tobacco, and alcohol inflation declined from 1.5% to 1.2%. Core inflation, which excludes energy and food, increased from 2.4% to 2.5%. ⑶ Among major economies, inflation accelerated in Germany, France, Spain, and the Netherlands, while Italy's inflation saw a slight dip from 3.0% to 2.9%.