Eurozone inflation rises to 1.7%

Annual inflation in the eurozone rose to 1.7% in July, up from 1.4% in June according to Eurostat, the statistical office of the European Union (EU).

A year earlier, consumer prices in the eurozone fell 0.6%. According to Eurostat, July’s rate of inflation is at its highest since November 2008.

Higher transport, tobacco and alcohol costs were highlighted as reasons for the rise.

In the EU, annual inflation rose to 2.1%, up from 1.9% in June, with Romania having the highest rate of inflation at 7.1%, followed by Greece at 5.5%. (article continues below)

Compared with June last year, annual inflation rose in 19 member states, remained the same in one and fell in six. Ireland had the lowest rate, with consumer prices falling 1.2%