ECB Prepares Rate Hike Amid German Inflation Rise to 2.9%

German inflation edged up to 2.9% year-over-year in August, exceeding July's rate of 2.8%, according to a recent estimate.

The increase is largely attributed to higher energy prices, specifically oil costs, which have driven up headline inflation despite gas and electricity prices remaining lower than last year.

ING analysts predict that the path of headline inflation will continue to be influenced by the ongoing war in the Middle East and oil prices, with a possible rate hike from the European Central Bank (ECB) on the horizon for next week's meeting.