Euro Zone Inflation Rises Above 3% Amid Energy Price Surge

The European Central Bank (ECB) is increasingly likely to raise interest rates this month after euro zone inflation rose above 3% in August due to higher energy costs.

According to data from Eurostat, inflation in the 21 nations sharing the euro accelerated to 3.3% in August from 2.9% in July.

The increase was largely driven by rising crude oil and natural gas prices, as well as increased refiner margins.

However, underlying price pressures remained modest, with core inflation easing to 2.4% last month from 2.5%, despite growth in services prices slowing to 3.0% from 3.3%.