Eurozone inflation rises to 3.3% in August
ECB expected to lift interest rates next week as higher energy prices bite
Eurozone consumer price inflation spiked 3.3% year-over-year in August, as forecasted, surpassing the previous 2.9% reading. Inflation accelerated monthly to 0.4% from 0.2%. The core HICP, excluding food, energy, alcohol, and tobacco, climbed 2.4% YoY, below forecasts and the prior 2.5%. A marginal positive effect on the Euro (EUR) was noted, but it remains weaker against the US Dollar, with EUR/USD down 0.2% to roughly 1.1595.
The HICP measures changes in the prices of a standard basket of goods and services in the Eurozone, calculated monthly using consistent methods across member states. A high reading typically benefits the Euro, while a low reading is bearish. Financial markets professional Sagar Dua has been engaged in the markets since college, beginning with chart analysis training.
Meanwhile, EUR/USD is struggling amid global uncertainties and hawkish expectations around the Fed's interest rate outlook, trading below 1.1600 in Europe on Tuesday.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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