Euro Zone Inflation Hits Record High on Energy Costs

Inflation in the euro zone jumped to 3.3% in August 2026, driven by soaring energy costs linked to conflict in Iran.

The sharp increase follows inflation readings of 2.9% in July and 2.8% in June, according to data released by Eurostat.

The biggest contributor was a significant rise in energy prices, which surged 14.3% from the previous month's 10.3%, marking the highest rate recorded since September 2024.

The European Central Bank (ECB) is expected to raise interest rates at its upcoming meeting on September 10, with traders assigning a 98.9% probability to a 25 basis point increase to 2.5%.