Inflation in the Eurozone continues to rise, according to preliminary estimates released by Eurostat, the statistical office of the European Union, on Friday. Inflation is projected to reach 2.9 percent in July, up from 2.8 percent in June.
The “core inflation,” which excludes energy and food prices, increased slightly from 2.4 percent to 2.5 percent. This metric is crucial for the ECB when setting interest rates, as the central bank is aiming for a rate around two percent.
Looking at sub-categories, energy inflation was expected to hit 10.0 percent in June, a rise from 8.5 percent in the prior month. Services grew by 3.3 percent compared to 3.2 percent in June, while food, alcohol, and tobacco prices rose by 1.2 percent (up from 1.5 percent in June). Industrial goods, excluding energy, saw an increase of 0.9 percent, up from 0.7 percent in June.
Among the Eurozone members, Lithuania reported the highest inflation rate in July at 5.6 percent. In contrast, Estonia saw its prices climb by only 2.0 percent, according to the preliminary figures.
