Eurozone inflation holds steady at 2% in July

Preliminary data released today by the European statistical agency, Eurostat, revealed that eurozone inflation held steady at 2% in July, the same level as in June.

This July inflation rate was higher than economists’ expectations of 1.9%, according to Reuters.

The eurozone inflation figures follow indicators released earlier this week showing the eurozone economy growing by 0.1%, better than expected, in the second quarter. However, this is significantly lower than the 0.6% growth in the first quarter.

Taxes are widely expected to negatively impact economic growth, including in the eurozone, and to affect commodity prices for US consumers. Their impact on inflation in Europe remains uncertain.