Eurozone Inflation Soars to Three-Year High Amid Energy Price Surge

According to market forecasts cited by Reuters, eurozone inflation is expected to accelerate to 3.3% in August, its highest level in three years.

The increase, predicted for August, would further strengthen expectations that the European Central Bank (ECB) will raise interest rates in September.

In July, annual inflation in the eurozone reached 2.9%, compared to 2.8% in June, with energy prices rising by 10% year-on-year being a major factor behind the acceleration.

Core inflation, which excludes energy and food, also increased to 2.5% in July.

The ECB has already raised its key interest rate by 0.25 percentage points to 2.25% in June, citing higher energy prices and the conflict in the Middle East as increasing inflationary pressures.

ECB governors are reportedly ready to raise interest rates once again in September to 2.50%, pending August's inflation data and new economic forecasts due on September 9-10.