ECB Rate Hike All But Guaranteed as Gas Prices Soar

The recent surge in euro prices against the dollar has been tempered by the ongoing climb of European natural gas prices, which have reached a three-and-a-half-year high above ¬71/MWh.

This trend poses both a growth risk and a threat to inflation, as Dutch TTF gas futures continue to rise amid persistent US-Iran tensions.

The escalating energy prices are expected to drive up consumer costs and put pressure on the European Central Bank (ECB) to raise interest rates in September.

A rate hike is now almost certain, with headline inflation having jumped to 3.3% in August, but further tightening beyond that point remains uncertain.