European stock exchanges closed mixed on wednesday as investors assessed renewed inflationary pressures:uropean STOXX Europe 600 index edged down 0.02%, or 0.13 points, to finish at 651.77. Germany's DAX was nearly flat at 26,129.78, while France's CAC 40 increased 0.09% to 8,501.91. The UK's FTSE 100 gained 0.14% to close at 10,743.35. Italy's FTSE MIB fell 0.75% to 52,618.2, while Spain's IBEX 35 declined 0.44% to 19,847.5.

According to Anadolu Agency, data released Wednesday showed that annual inflation in the euro area rose to 2.9% in July from 2.8% in June. Energy contributed 0.94 percentage points to the annual rate, while services added 1.55 percentage points, according to Eurostat. UK consumer inflation also accelerated to 2.9% in July from 2.6% in June, marking its first increase since March. Housing and household services, particularly gas and electricity, made the largest upward contribution, the Office for National Statistics said.

Government bond yields initially climbed amid concerns over inflation, high public debt and oil prices before retreating after the US Treasury announced increased liquidity support for longer-dated securities. Germany's 10-year bond yield touched 3.275%, its highest level in 15 years, while the country's 30-year yield reached its highest since 2011 before easing. French and Italian borrowing costs also climbed to multi-year highs.

Brent crude traded above $92 per barrel during the session, reinforcing concerns about energy-driven inflation and the outlook for European Central Bank monetary policy.