Prices in the Eurozone rise 2.9% in July, faster than in June

WHAT HAPPENED

Inflation in the Eurozone rose to 2.9% annually in July, up from 2.8% in June. Energy increased by 10% and services by 3.3%. In simple terms: something that cost 100 euros now costs 102.90.

WHY IT MATTERS

Gasoline, gas, and electricity became more expensive due to the tension in the Strait of Hormuz, a key route for oil and gas. This pressures transportation, production, and household bills. As prices continue to accelerate, the ECB has less room to cut rates soon.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, European inflation may keep loans expensive and slow down consumption, construction, and businesses that rely heavily on energy. At home, it means more spending on gasoline and electricity, and possibly more expensive mortgages for a longer time.