Eurozone inflation sees surprise dip

Inflation in the eurozone dropped 0.2% to 2.5% in July, surprising analysts who had expected the figure to remain unchanged.

The European Union's statistics office revealed the fall, which is down from 2.7% the previouss month, Bloomberg reports. While the dip was unexpected, annualised inflation for the 17 member countries remains above the European Central Bank's 2% target for the eighth consecutive month. The drop has been partly blamed on a 6% surge in oil prices this year, which is squeezing consumers while putting further pressure on companies to pass on higher costs. ECB's president Jean-Claude Trichet said earlier this month inflation will probably stay above 2% over the coming months, and raised...