Hopes of September ECB rate cut dashed as eurozone inflation jumps to 2.6%

Next ECB meeting 12 September

The eurozone’s annual rate of inflation edged up to 2.6% in July, an increase from the previous month's 2.5% rate, as services inflation remained sticky and energy prices spiked.

This was inline with the estimates made by Eurostat, the statistical office of the European Union, at the end of July.  While services inflation dropped from May and June's reading of 4.1% to 4%, it was still judged to be the most significant contributor to the euro area annual inflation rate, according to data from Eurostat. Energy prices skyrocketed over the course of the last month, rising from a 0.2% rate of inflation to 1.2%. Tobacco was the only other item recorded to see an inflationary increase, jumping from 2.4% to 2.5%.  European Central Bank stands firm as it holds inter...