In Short

A round-up of other world news in brief

Euro zone inflation hits 20-month high

Oil drove euro-zone inflation to a 20-month high in July and core inflation inched up, but price rises are likely to slow in the second half of the year as budget cutbacks weaken economic recovery.

Consumer prices in the 16 countries using the euro dipped 0.3 per cent month-on-month in July but still rose 1.7 per cent in annual terms, Eurostat said yesterday.

The annual figure was in line with expectations.

The European Central Bank wants to keep inflation at just below 2 per cent over the medium term and the figures showed little threat to expectations it can keep interest rates steady well into next year. But of bigger concern may be how prices will fare in economies like Spain and Greece, where tax changes are masking the disinflationary impact. – (Reuters)

NI firm closes deal for motorway stops

A Northern Ireland building and shopfitting firm has won a contract worth €500,000 to complete the interiors for the coffee shops at six new motorway service stations.

Dunmurry-based McNicholl Hughes will fit out the Costa Coffee outlets within the six Applegreen motorway service stations in Dublin, Louth and Meath.

The Antrim company employs 15 people but is planning to employ another two by 2011.

McNicholl Hughes's managing director Mark Hughes said: "We are delighted to bring our trusted experience with the Costa Coffee chain to Applegreen and look forward to creating the six stores.

"This contract builds on the success we have already experienced in the Republic of Ireland having worked with Educo Gym and Specsavers."