Annual inflation in Greece rose to 3% in July from 2.5% in June, according to Eurostat’s first estimate released today (31/7). Eurozone annual inflation was 2.6% in July from 2.5% in June, according to a flash estimate from Eurostat.

Looking at the main components of euro area inflation, services are expected to have the highest annual rate in July (4.0%, compared with 4.1% in June), followed by food, alcohol and tobacco (2.3%, compared with 2.4% in June), energy (1.3%, compared with 0.2% in June) and non-energy industrial goods (0.8%, compared with 0.7% in June).

The data comes a day after the release of second-quarter GDP for the Eurozone, which came in at 0.3%, slightly higher than expected.

The GDP figures are an early benchmark for the ECB, which has focused more on the dynamics of price pressures than growth concerns so far, but that balance could shift.

At its last meeting, the ECB highlighted near-term growth concerns and, as such, markets will be watching for reasons to price in accelerating rate cuts. Earlier, French GDP data was slightly better than expected and continues to point to a gradual recovery in the Eurozone’s second largest economy.