ECB Rate Hike Becomes Formality as Eurozone Inflation Surges

European Central Bank (ECB) policymakers are likely to raise interest rates by another 0.5% in September, following inflation data that showed prices rising above 3% for the first time since June.

The eurozone's inflation rate accelerated to 3.3% in August from 2.9% in July, driven mainly by higher energy costs due to rising crude oil and natural gas prices.

Despite this increase, core inflation - which excludes volatile food and fuel prices - eased to 2.4% last month from 2.5%, suggesting that the energy price surge is not yet causing widespread second-round effects.

The ECB's rate hike decision on September 10 is seen as a formality by markets, with many investors already pricing in the move.