Eurozone Inflation Accelerates to 3.3% Amid Energy Price Pressures

Eurozone inflation accelerated to 3.3% in August as energy costs fueled price pressures, according to data released by Eurostat on Tuesday.

The increase was driven mainly by higher crude oil and natural gas prices, as well as wider refining margins, amid continued disruption in the energy market linked to the conflict involving Iran.

While core inflation eased to 2.4% from 2.5%, below forecast, services inflation moderated to 3.0% from 3.3%, suggesting that the jump in energy costs has yet to generate significant second-round effects across the broader economy.

The figures reinforce expectations for another European Central Bank rate increase at its September 10 meeting, with markets anticipating a 25-basis-point hike in the deposit rate to 2.5%.