Eurostat said Friday euro-area inflation rose to 2.9% in July from 2.8% in June,
in line with market expectations, driven in part by an oil-price spike linked to
the Iran war. Core inflation (ex food and energy) accelerated to 2.5% from 2.4%;
services inflation climbed to 3.3%. The print reinforces expectations of another
ECB rate increase amid renewed price pressures from higher oil. Analyst Balazs
Koranyi cautioned the July release, while important, is unlikely to be decisive
for policy because policymakers will have a fresh August inflation reading
before the next meeting and oil remains highly volatile.
