Euro area inflation edges up to 2.6% in July

Euro area annual inflation rose to 2.6 per cent in July 2024, up from 2.5 per cent in June and remaining persistently above the European Central Bank‘s ( ECB) target, driven primarily by a notable rise in energy prices, which surged to 1.3 per cent from 0.2 per cent in June.

The rise in inflation will sharpen the debate at the ECB’s September 12 meeting, following its tentative interest rate cut in June and the decision to hold steady in July.

President Christine Lagarde indicated that future decisions would be made on a meeting-by-meeting basis, depending on the latest data.

Attribution: Eurostat