The inflation rate in the Eurozone remains at 2%, supporting the view of a cautious interest rate cut by the European Central Bank

The inflation rate in the Eurozone remains at the European Central Bank's target level, providing support for officials who have indicated they are not in a hurry to continue cutting interest rates. The European Union's statistics office stated on Friday that the consumer price index (CPI) in the Eurozone rose 2% year-on-year in July, unchanged from the previous month, while economists surveyed had expected the CPI increase to slow to 1.9%. The core CPI, excluding volatile energy and food prices, rose 2.3% year-on-year, while the closely watched inflation in the services sector hit its lowest level since early 2022. As inflation hovers around the target and the economy has so far managed to withstand U.S. tariff pressures, many officials have indicated that they believe there is insufficient reason for the European Central Bank to continue its accommodative policy. Investors expect the likelihood of action being taken again this year to be less than 50%