Zwei Drittel der Inflation: Steuerstufen werden um 2,27 Prozent angehoben

Inflation in the Eurozone surged in August, with consumer prices rising by 3.3% compared to the same month last year, according to an initial estimate from Eurostat, the European statistics office. Market experts surveyed by Reuters had anticipated a rate of 3.3%. Inflation had been hovering at 2.9% in July. The European Central Bank (ECB) aims for inflation to sit at 2.0%.

A rate hike by the ECB in the coming week appears highly likely. Financial markets are currently anticipating the ECB raising its policy interest rate to 2.5% at its upcoming meeting. The monetary authorities will decide on the interest rate change next Thursday and release new projections on inflation and growth development. Several central bankers have indicated a preference for higher interest rates recently, including Isabel Schnabel, the German ECB deputy governor.

Austrian Central Bank chief Martin Kocher emphasized on Tuesday that upward risks for inflation have recently re-emerged. "If this picture is confirmed in the next ECB forecast, I believe a further interest rate hike in the near future will be necessary," Kocher stated. The ECB aims to prevent the price shock caused by the Iran war from becoming entrenched. It raised interest rates for the first time in three years in June and left a rate pause in June.