German Inflation Hits 2.9%, ECB Rate Hike Momentum Builds

German inflation reached its highest level since April this month, increasing to an annual rate of 2.9% in August.

This growth in consumer prices has bolstered the argument for the European Central Bank (ECB) to raise interest rates next month.

The main driver behind the increase was energy prices, which remain high due to the ongoing uncertainty over a peace deal in the Iran conflict.

Evidence from Spain and France suggests that rising energy costs are having a ripple effect across the region, contributing to higher inflation rates.