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πŸ‡ͺπŸ‡Ί Eurozone inflation hits 2.9%, and the ECB's rate-cut story is running out of road

πŸ‡ͺπŸ‡Ί Eurozone inflation hits 2.9%, and the ECB's rate-cut story is running out of road

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.

Bar chart of annual inflation rates (%) in July 2026 for European countries, with Euro area (yellow) and EU (dark blue) bars highlighted.
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

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