Euro-Area Inflation Strengthens as US-Iran Strikes Boost Oil

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessEuro-Area Inflation Strengthens as US-Iran Strikes Boost OilEuro-area inflation picked up in July after the collapse of a US-Iran ceasefire boosted oil prices, reinforcing expectations that the European Central Bank will need to raise interest rates again.Author of the article:Last updated 41 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.j5btahe(p{r(ihob2qavxmoj_media_dl_1.png Eurostat(Bloomberg) — Euro-area inflation picked up in July after the collapse of a US-Iran ceasefire boosted oil prices, reinforcing expectations that the European Central Bank will need to raise interest rates again.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountConsumer prices increased an annual 2.9% after 2.8% in June, Eurostat said on Friday. The reading is in line with the median estimate in a Bloomberg survey and follows stronger-than-anticipated upticks in France and Spain.Across the 21-nation bloc, energy surged 10%, while a gauge for services and one excluding volatile items such as fuels and food also accelerated.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe report comes a week after policymakers took a break from lifting borrowing costs, allowing more time to collect information on how a re-escalating conflict in the Middle East affects euro-zone inflation and growth. Economists and investors predict a hike in September, adding to June’s quarter-point step.“Today’s numbers, together with developments in the Middle East over the course of July, put the ECB firmly on a path to hike in September,” said Kamil Kovar, head of euro-zone forecasting at Moody’s Analytics.German bonds gave up earlier gains to slip lower, lifting the 10-year yield one basis point to 3.16%. Money markets continue to see a 90% chance of a quarter-point increase in September, but they lifted bets on further tightening slightly, pricing 42 basis points of hikes by year end.Officials will received one more set of inflation figures — for August — ahead of their September meeting, as well as updated projections prepared by ECB staff. While President Christine Lagarde refused last week to pre-commit to a move, some of her peers have left little doubt about the direction for policy ahead.Austria’s Martin Kocher said on Friday that “uncertainty and volatility remain high.”That follows remarks from Gediminas Simkus of Lithuania, who said that the probability of a hike is “much higher” than that of a hold. His Slovak colleague Peter Kazimir went one step further, arguing that the ECB will have to raise rates at least once more “even if the situation improves somewhat.”For the moment, signals from the Middle East are mixed, after shipping through the Strait of Hormuz picked up recently even as the US and Iran returned to exchanging air strikes. Oil prices — while back below $100 a barrel — remain elevated.Meantime, an ECB survey showed pay growth, which officials track closely for signs that higher energy costs will lead to permanently higher inflation, is poised to accelerate through early 2027.Still, the euro-zone economy has weathered the crisis remarkably well. Output expanded at the strongest pace in more than a year in the second quarter and twice as much as forecast, with all of the region’s top four nations recording growth.—With assistance from Joel Rinneby, Harumi Ichikura, Barbara Sladkowska and James Hirai.(Updates with economist, Kocher and market reaction starting in fifth paragraph)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.