Eurostat, the statistical office of the European Union, reported a few moments ago that annual inflation in the eurozone rose to 2% in July, according to the preliminary reading, remaining unchanged from June’s reading and better than expectations of 1.9%.
The largest contribution to inflation in July came from the food, alcohol, and tobacco sector, which rose at an annual rate of 3.3%, up from 3.1% in June. The services sector rose by 3.1%, up from 3.3%. The non-energy industrial goods index rose by 0.8%, while the energy index continued to decline by 2.5% for the fifth consecutive month.
The core index, which excludes food and energy prices, remained at its May level of 2.3%, matching expectations.