Euro zone inflation holds steady at higher-than-expected 2% in July

Euro zone inflation was unchanged at a higher-than-expected 2% in July, flash data from statistics agency Eurostat showed Friday.

Economists polled by Reuters had expected the figure to hit 1.9%, after a 2% reading in June.

So-called core inflation, which strips out more volatile food, energy, alcohol and tobacco prices, came in at 2.3% in July, the same level as during the previous two months, Friday's data showed.

The closely watched services print meanwhile eased to 3.1% in July after picking up slightly to 3.3% in June.

Following the data release, the yield on Germany's 10-year bond was more than one basis point higher, while the French 10-year bond yield was up by less than one basis point.

The inflation figures follow on the footsteps of indications earlier this week that showed the euro zone economy expanded by a better-than-expected 0.1% in the second quarter, which was nevertheless sharply down on the 0.6% growth of the three months to the end of March.

Analysts interpreted the data as Europe's economy so far showing resilience in the face of U.S. President Donald Trump's tariff policies. The European Union and Washington recently inked a trade agreement which includes a 15% baseline levy for EU goods bound for the U.S. Sectoral tariffs and temporarily reduced so-called reciprocal duties have already been in play.

Duties are widely expected to weigh on economic growth, including in the euro zone, and affect prices of goods for U.S. consumers. Their impact on inflation in Europe remains uncertain.