Eurozone inflation holds steady at 2 percent – POLITICO

Inflation in the eurozone stayed stable in July, as rising food prices offset declining energy costs — a development likely to reinforce calls for the European Central Bank to keep interest rates on hold.

Annual headline inflation remained at 2 percent, the same level as in June and a touch above analyst forecasts of 1.9 percent, according to Eurostat figures released on Friday. Unprocessed food prices rose by 5.4 percent, up from 4.6 percent the previous month, while energy prices continued to fall, down 2.5 percent year-on-year.

Core inflation — which excludes volatile items such as food and energy — came in higher, at 3.3 percent.