Eurozone Inflation Surges Above 3% Amid Energy Price Pressures

Eurozone inflation rose to 3.3% in August due to higher energy costs, strengthening the case for an ECB interest rate hike.

The data from Eurostat showed that inflation accelerated from 2.9% in July, driven mainly by crude oil and natural gas price increases, as well as refiners bumping up their margins.

Core inflation, which excludes volatile food and fuel prices, eased to 2.4%, with growth in services prices slowing down to 3.0% from 3.3%.

The figures are consistent with the ECB's own expectations, suggesting a widely telegraphed rate hike on September 10 will be an easy decision for markets.