ECB Rate Hike Bets Strengthen as Euro Zone Inflation Hits 3.3%

The European Central Bank (ECB) is likely to raise interest rates again this month as euro zone inflation rose to 3.3% in August, driven by higher energy costs.

The increase in inflation was largely due to higher crude oil and natural gas prices, which also led to an increase in refiners' margins, according to data from Eurostat.

However, underlying price pressures remained modest, offering some reassurance to policymakers that the energy price surge is not yet setting off rapid inflation.

The ECB's own expectations suggest a rate hike will be a relatively easy decision, and financial investors have already priced in the move.