FRANKFURT (AFX) - The euro zone July current account deficit increased to 4.1 bln eur from a deficit of 2.5 bln a year earlier because of an increase in the deficit for income to 8.1 bln eur from 4.7 bln, combined with a decrease of 600 mln eur in the surplus for services to 900 mln, the European Central Bank said. These developments were only partly offset by the increase in the goods surplus to 8.5 bln eur from 6.3 bln, while the deficit for current transfers remained virtually unchanged at 5.4 bln eur. In the financial account, combined direct and portfolio investment registered net inflows amounting to 8.8 bln eur, 7.2 bln eur of which were in the direct investment account, the largest net direct investment inflows in the euro zone since 1999, it said. The bank attributed the 7.2 bln eur inflows in direct investment account to net inflows of 13.5 bln eur in "other capital," mostly intercompany loans, which more than offset net outflows in direct investment in "equity" of 6.3 bln eur. The portfolio investment account registered net inflows of 1.6 bln eur, compared to an outflow of 13.1 bln last year and portfolio investment in equity recorded net inflows of 4.4 bln eur in comparison to outflow totalling 20.5 bln last year. Net outflows of debt instruments amounted to 2.8 bln eur compared to inflows of 7.3 bln last year. Financial derivatives registered net outflows of 4.8 bln eur, compared to outflows of 400 mln and the other investment account net outflows of 16.0 bln eur in comparison to an inflow of 27.7 bln.