Eurozone Inflation Heats Up with Spain and France Surging

Spanish inflation surged to its highest level since 2023, more than doubling the European Central Bank's 2% target. The country's annual price increase reached 4.5% in August.

This is despite Spain boasting the fastest economic expansion among the euro zone's biggest members. However, the reading was just short of a median estimate in a Bloomberg survey.

In France, inflation also accelerated to its highest level since May on energy costs. The price increase exceeded expectations and strengthens the case for an interest rate hike next month.