Eurozone inflation climbed to 2.9% in July as energy costs jumped 10.3%, pushing the European Central Bank to reverse its rate-cut cycle. Markets now price roughly 85% odds of a second hike in September, even with German sentiment data still pointing to recession.
Eurostat’s final July release locked euro-area HICP at 2.9%, a fifth straight month above the ECB’s 2% target as energy costs reaccelerated. Source
