Brussels, July 31 (IANS) Yearly inflation in the eurozone is expected to reach 2.6 percent in July, up from 2.5 percent in June, according to preliminary data published on Wednesday by Eurostat.
The European statistics agency said that the price of services is the driving force of inflation, with a year-on-year rate of 4 percent in July, down from 4.1 percent last month. July’s yearly inflation for food, alcohol, and tobacco stands at 2.3 percent, down from 2.4 percent in June. Meanwhile, energy prices recorded a year-on-year inflation rate of 1.3 percent in July, up from 0.2 percent in June and non-energy industrial goods saw yearly inflation increase from 0.7 percent in June to 0.8 percent in July.
Countries with the highest inflation include Belgium, with a 5.5 percent inflation rate, Estonia and the Netherlands with 3.5 percent, and Croatia with 3.4 percent. Conversely, the lowest inflation rates were recorded in Finland with 0.6 percent, Latvia with 0.8 percent, and Lithuania with 1.1 percent.
Peter Vanden Houte, a chief economist at ING, called July’s 2.6 percent inflation rate disappointing. This bump in an overall disinflation trend could lead the European Central Bank (ECB) to reconsider cutting rates in September, he said, Xinhua news agency reported.
Noting that the ECB will be scrutinizing the service inflation rate, Vanden Houte explained it is the most domestic rate and very sensitive to wage increases. “Services inflation did come down – but only marginally, to 4 percent from 4.1 percent in June,” he added.
Regarding energy, Vanden Houte noted that the base effect would continue to have a volatile impact during the second half of the year. The inflation rate for energy prices went from negative during the first quarter of 2024 to 1.3 percent in July.
The ECB cannot say yet that the inflation battle has been won, Vanden Houte said. However, based on survey data, he predicted a continuation of disinflation.
Six weeks are remaining before the ECB decides on cutting rates. The ECB left interest rates unchanged at its meeting earlier this month. This followed a major policy shift in June, when it reduced rates by 25 basis points, marking its first cut since September 2019.
–IANS
as/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
