German Inflation Hits 2.9% as ECB Faces Rate-Hike Call

The European Central Bank (ECB) is under pressure to raise interest rates in response to rising inflation in Germany, which climbed to 2.9% in August.

This is the highest inflation rate since April and comes after similar increases in France and Spain, driven by higher oil and gas prices.

The ECB has already raised borrowing costs once and is expected to make another increase on September 10th, with financial markets pricing in further monetary tightening next year.