ECB Rate Hike Fails to Satisfy Inflation Fighter

The European Central Bank's (ECB) upcoming rate hike may not be enough to combat inflation, according to Gediminas Simkus, a member of the ECB's Governing Council. The bank is set to increase its deposit facility rate by 25 basis points to 2.50% at its September 10 meeting.

The move comes as euro-zone inflation reached 3.3% in August, up from 2.9% in July. Simkus has previously expressed concerns that the ECB's previous rate hike in June was 'too small' to address inflation growth.

Energy prices have been a major contributor to the inflation spike, with ongoing tensions in Iran driving up costs. Core inflation, which strips out volatile food and energy components, eased slightly to 2.4% in August.