Eurozone Inflation Surpasses 3%, ECB Rate Hike Bets Cemented

The Eurozone's inflation rate has surpassed 3% for the first time in August, according to data from Eurostat. The rate rose to 3.3% from 2.9% in July, driven mainly by higher energy costs due to increased prices of crude oil and natural gas.

However, underlying price pressures remain modest, suggesting that the energy price surge is not yet causing second-round effects that could lead to rapid inflation. Core inflation, which excludes volatile food and fuel prices, eased to 2.4% from 2.5%, as growth in services prices slowed to 3.0% from 3.3%

The European Central Bank's (ECB) expected rate hike on September 10 is seen as a done deal by financial investors, who have already priced it in. The decision to raise the deposit rate to 2.50% will be a relatively easy one for policymakers.