July’s Eurozone HICP print of 3.2% YoY tops estimates, signaling persistent price pressures ahead of ECB policy meetings.
Eurozone inflation quickened to 3.2% year-over-year in July, up from 2.8% in June and above the 2.9% consensus forecast. The Harmonized Index of Consumer Prices reflects broad-based price increases across the 20-nation bloc, driven by energy and services costs.
June’s reading stood at 2.8%, while economists had anticipated a modest rise to 2.9%. The acceleration marks the highest inflation rate since April, reversing a three-month easing trend and complicating the European Central Bank’s inflation outlook.
Markets are reassessing the likelihood of further ECB rate cuts this year, with swaps pricing shifting slightly hawkish in early reactions.