Preliminary estimates released Friday morning by Eurostat showed that the Eurozone's annual Consumer Price Index (CPI) rose by 2.0% in July, surpassing market expectations of a 1.9% increase and matching the previous reading of 2.0%.

Excluding food and energy, core CPI rose by 2.3%, in line with market forecasts and unchanged from the previous reading.

These figures highlight persistent inflationary pressures facing European Central Bank policymakers, reducing the likelihood of a 25-basis-point rate cut in September.