Eurozone inflation hits 20-month high

EUROZONE inflation hit a 20-month high last month, official figures have shown.

Annual inflation in the 16-nation eurozone rose to 1.7 per cent in July, up from 1.4 per cent in June and the highest rate since November 2008, the European statistics office Eurostat said.

The figure rose as fuel costs for transport climbed along alcohol and tobacco prices.

Across all 27 nations in the European Union, prices were up 2.1 per cent in July, compared with a rise of 1.9 per cent in June.

On a month-on-month basis, prices in the eurozone fell 0.3 per cent in July, and in the wider EU fell 0.2 per cent.