Eurozone inflation rate rises to 2.9% in July, with increased expectations of European Central Bank rate hikes

According to data released by the European Statistical Office, consumer prices in the Eurozone rose by 2.9% year-on-year in July, higher than the 2.8% in June. Driven by the rise in oil prices after the rupture of the US Iran ceasefire agreement, inflation in the eurozone rebounded in July, and market expectations for the European Central Bank to raise interest rates again have increased. Energy prices in the Eurozone have risen by 10%, while service prices and core inflation indicators have accelerated.