Eurozone Inflation Hits 3.3% Amid Ongoing War in Iran

Inflation in the Eurozone has surged to 3.3 percent in August, driven by rising energy prices due to the ongoing war in Iran.

The European Statistical Office reported that the harmonized indices of consumer prices (the equivalent of the American CPI) increased from 2.9 percent in July, with a significant portion of the increase attributed to higher energy costs.

Energy prices have risen by 14.3 percent from the previous year, a result of the supply shock caused by the closure of the Strait of Hormuz to oil and gas exports from the Persian Gulf.

The uptick in inflation is expected to prompt the European Central Bank to raise its benchmark rates by a quarter of a percentage point to 2.5 percent during its next meeting on September 10.