ECB mulls rate hike as Eurozone inflation rises to 2.9%
Business
Inflation in the eurozone ticked up to 2.9% in July 2026, mostly thanks to higher oil prices caused by the Iran conflict.
Even core inflation and service costs are rising, showing that price pressures are spreading across the economy.
The European Central Bank (ECB) is now considering another interest rate hike to keep these rising prices in check.
Economy grew 0.4% despite energy worries
Despite energy worries, the eurozone's economy grew by 0.4% last quarter, surprising analysts and giving the ECB more reason to tighten policy.
While markets expect more than two rate hikes by April 2027, economists think there might only be one since food inflation is easing and wage growth remains weak.
The ECB will look at August's inflation numbers before making its next move.