Consumer Prices in the Eurozone Rose in July

Consumer prices in the eurozone rose in July, mainly due to higher fuel prices. Food and tobacco products also became more expensive, as did certain services.

Due to the easing of the corona measures, the demand for services is increasing, which is pushing prices.

According to the European statistics office Eurostat, inflation stood at 2.2 percent year-on-year, compared to 1.9 percent in June, when it fell slightly. Higher inflation could undermine consumers’ purchasing power and urge the European Central Bank (ECB) to start phasing out corona support packages or raising interest rates more quickly.

The service sector includes retail, tourism and hospitality. Excluding the fluctuating prices of energy, food and stimulants such as alcohol and tobacco, so-called core inflation stood at 0.7 percent, compared to 0.9 percent a month earlier.

In July, Eurostat measured even higher inflation for the entire European Union. There it was 2.5 percent, compared to 2.2 in June. Within the EU, it was highest in Estonia, Poland and Hungary and lowest in Malta, Greece and Italy. In the Netherlands, inflation was 1.4 percent, according to the statistical office.