The annual rate of inflation in the Eurozone rose in July to 2.6% due to rising energy costs, AFP reported.
Economists polled by FactSet had forecast inflation to ease to 2.4% in July.
The increase was driven by energy prices, which accelerated in July to 1.3%, significantly more than last month's 0.2%, according to Eurostat.
Food and beverage prices rose 2.3% this month, albeit at a slightly slower pace than June's 2.4%.
Core inflation, which excludes volatile energy, food, alcohol and tobacco prices and is a key gauge for the bank, was unchanged at 2.9% in July
FactSet analysts had expected it to drop to 2.8%.
The price increase still remains above the European Central Bank's (ECB) target of 2%.
Inflation has come down significantly from a peak of 10.6% recorded in October 2022, when energy prices rose following Russia's invasion of Ukraine.
This prompted the ECB to raise interest rates aggressively to cool the raging inflation. In June, the bank cut interest rates for the first time in 5 years.
The ECB refrained from a second interest rate cut in July, but is expected to cut borrowing costs again in September. | BGNES
