Eurozone inflation drops in July as economic growth accelerates

Europe's economy is showing signs of resilience, according to data published Monday by Eurostat, the EU statistical office.

Inflation in the eurozone dropped to 5.3% in July, its lowest level since January 2022, and down from 5.5% in the previous month. 

But core inflation, which provides a more accurate estimate of underlying price pressures, remained unchanged at 5.5%.

The drop in inflation is in line with previous economic forecasts but remains well above the 2% target of the European Central Bank (ECB).

Last week, the ECB increased interest rates for the ninth consecutive time to their highest levels in 23 years, in a bid to bring inflation under control.

Meanwhile, new data shows that the eurozone's economy grew 0.3% in the second quarter, more than previously expected. GDP in the 27-member EU bloc remained stable.

Germany, considered the union's economic powerhouse, appears to have come out of its recession, eking out 0.0% growth.

Our journalists are working on this story and will update it with further information.