ECB Rate Hike Fails to Tame Euro Area Inflation

The European Central Bank's (ECB) rate hike is not having the desired effect on inflation, as euro area annual inflation was confirmed at 3.2 percent in August.

This marks a rise from 2.0 percent in the same period last year and marginally below the 3.3 percent flash estimate published earlier this month.

The main contributor to this increase is energy prices, which rose by 14.3 percent year-on-year, while services accounted for 1.43 percentage points of the total rate.

This data release comes after the ECB raised interest rates by a quarter point to 2.5 percent last week, and it's clear that inflation remains a pressing concern for policymakers.