Euro Zone Inflation Jumps Above 3% on Higher Energy Costs

European Central Bank (ECB) rate hike bets have been strengthened by inflation data showing that the Euro zone's inflation has risen above 3% in August, driven largely by higher energy costs.

The rate of inflation accelerated to 3.3% from 2.9% in July, with core inflation easing to 2.4% and underlying price pressures remaining modest.

Energy prices have surged due to increased crude oil and natural gas prices as well as refiners' higher margins, putting upward pressure on prices.