Eurozone Inflation Rises to 3.3 Percent in August, Highest in Three Years

Eurostat's flash estimate showed the euro area's annual inflation rate rose to 3.3 percent in August from 2.9 percent in July, according to Ecoiran, reported Tuesday, 10 Shahrivar 1405 (September 1, 2026). That is the highest level since September 2023, widening the gap with the European Central Bank's 2 percent target. The rise was driven mainly by a sharp increase in energy prices, while core inflation, which excludes energy and food, eased to 2.4 percent. Financial markets are now fully pricing in a 25 basis point ECB rate hike at the September 10 meeting, the report said, which would take the policy rate to 2.5 percent.