Eurozone Inflation Hits Three-Year High as ECB Prepares Rate Hike

The eurozone inflation rate jumped to its highest level in almost three years, reaching 3.3% in August. This is up from 2.9% the previous month and is in line with the median estimate in a Bloomberg survey.

The rise in inflation has cemented the case for an interest-rate hike by the European Central Bank (ECB) next week. Executive board member Isabel Schnabel has stated that borrowing costs must rise further to bring price gains back to target.

Austrian central bank chief Martin Kocher echoed this sentiment, stating that 'upside risks to inflation have increased again recently.' This suggests that another interest-rate hike may be necessary in the near future.