Euro area: Inflation jump supports ECB hike – Commerzbank
Commerzbank’s Dr. Vincent Stamer notes that Euro area headline inflation rose to 3.3% in August from 2.9% in July, driven mainly by higher energy prices linked to the Middle East conflict.
Euro area inflation surged to 3.3% in August, up from 2.9% in July, primarily due to higher energy costs stemming from the Middle East conflict. While core inflation decreased to 2.4% in August from 2.5% in July, this uptick in headline inflation is expected to prompt the European Central Bank (ECB) to raise interest rates in September. Subsequent rate hikes are not anticipated as inflation is projected to decline next year, in line with the ECB's projections.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
