Higher energy prices drove inflation in the euro area to an annual rate of 1.7 percent in July, the highest level in 20 months but still within the range considered acceptable by the European Central Bank, according to data released Monday.
The rise in prices, from a rate of 1.4 percent in June, was not considered alarming by economists, who expect price pressures to remain in check as growth slows in most of Europe. Excluding energy prices, inflation was 1.1 percent in July, up from 0.9 percent in June, according to Eurostat, the European Union’s statistics office.
“We need to see convincing signs of an upturn in domestic demand and we’re not seeing that just yet,” said Nick Matthews, an economist at Royal Bank of Scotland. “Underlying domestic price pressures are still quite contained.”
For more: Euro-Zone Inflation Rises on Higher Energy Prices - NYTimes.com
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