Eurozone annual inflation rose to 2.9% in July 2026 from 2.8% in June, matching the flash estimate and remaining well above the European Central Bank's 2.0% target. The increase was driven mainly by a renewed jump in energy prices, with energy inflation accelerating to 10.3% from 8.5% as hostilities between the US and Iran resumed. Underlying price pressures also strengthened, with services inflation edging up to 3.3% from 3.2%, non-energy industrial goods inflation rising to 0.9% from 0.7%, and core inflation increasing to 2.5% from 2.4%. Food, alcohol and tobacco inflation eased to 1.2% from 1.5%, while inflation accelerated in Germany, France, Spain and the Netherlands and slowed slightly in Italy.