Euro area annual inflation rises to 2.6% in July

By Tuba Ongun

The euro area annual consumer inflation rate rose to 2.6% in July as energy costs grew at a faster pace, according to flash estimates released on Tuesday.

Headline inflation was up from 2.5% in June while market had expected the figure to remain stable, Eurostat data showed.

The cost of energy increased 1.3% year-on-year in July, accelerating from June's 0.2% hike.

Core inflation, stripping out volatile food and energy prices, was stable at 2.8% in July compared to a month ago.

Services continued to have the highest annual rate in July with 4%, a slight decline from June's 4.1%.

On a monthly basis, the euro area consumer price index showed no change in July.

Energy prices in the single currency area climbed 0.9% month-on-month, shifting from a 0.8% decrease in June.