Eurozone inflation creeps up to 2.6% in July

Ahead of September decision

Euro area annual inflation edged up from 2.5% in June to 2.6% in July, evoking questions of whether the European Central Bank can still afford to cut rates in September.

A dramatic jump in energy inflation was one of the key instigators of this inflation, rising from 0.2% to 1.3%, according to data from Eurostat.  Non-energy industrial goods also climbed marginally from 0.7% to 0.8%, while services inflation, which has remained sticky across the Eurozone, US and the UK, nudged down from 4.1% to 4%, back to its February and March levels. Food, alcohol and tobacco prices for consumers also fell slightly to 2.3%, compared to 2.4% a month before.  European Central Bank stands firm as it holds interest rates at 3.75% Prior to the inflation reading, t...