Euro Zone Inflation Hits 3.3%, ECB Rate Hike Bets Solidify

Inflation in the euro zone rose to 3.3% in August, driven by higher energy costs, according to Eurostat data.

The increase from 2.9% in July was largely due to rising crude oil and natural gas prices, as well as increased refiner margins.

However, underlying price pressures remained modest, with core inflation easing to 2.4% from 2.5% last month.

The European Central Bank (ECB) is expected to raise its deposit rate to 2.50% on September 10, following a hike in June.