Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"
Investing.com - Eurozone consumer price growth accelerated slightly in the twelve months to July, in line with estimates, as renewed fighting in the Middle East sparked fluctuations in oil prices, maintaining inflationary pressures that have been front of mind for policymakers at the European Central Bank.
The headline consumer price index rose by 2.9% on annualized basis this month in the 21-member currency area, versus 2.8% in June, according to Eurostat, the European Union’s statistics agency.
Core CPI, which strips out volatile items like food and energy, sped up to 2.5% from 2.4%, while services inflation quickened to 3.3%.
The ECB will likely be factoring in this inflation reading, as well as an upcoming release in August, when officials next meet in September. Earlier in July, the central bank for the Eurozone left interest rates unchanged, but flagged that "uncertainty remains high" around the impact of the Iran war and the full effect of an energy shock stemming from the conflict "has yet to play out."
Oil prices have gyrated in recent days, fueled by a fresh escalation in air attacks between the U.S. and Iran, as well as signs that the war may be spreading to other parts of the Middle East. Brent crude futures, the global oil benchmark, were last trading at around $89 a barrel, but temporarily crested $100 a barrel last week. The contract remains well above pre-war levels.
Investors are now penciling in more ECB rate hikes in the coming months, persuaded in part by data suggesting resilient Eurozone economic activity. In the second quarter, the Eurozone expanding by a faster-than-anticipated 0.4%.
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