Eurozone Inflation Hits 3.3%, ECB Rate Hike Looms

Inflation in the eurozone accelerated to 3.3% in August, outpacing the European Central Bank's 2% target, due largely to a 14.3% surge in energy prices.

The sharp increase in costs was driven by higher oil and natural gas prices, which have been impacted by the ongoing conflict in Iran and disruptions in the Strait of Hormuz.

According to Eurostat data, core inflation, excluding volatile food and energy prices, eased slightly to 2.4% from 2.5% in July, while services inflation slowed to 3% from 3.3%.

The inflation figures have intensified pressure on the ECB to raise interest rates later this month, with market expectations pointing towards a quarter-point rate increase at its September 9-10 meeting.