Economic Buzz: Eurozone inflation accelerates to 3.3% as energy prices surge

Eurozone annual inflation accelerated to 3.3% in August 2026 from 2.9% in July, reaching its highest level since September 2023 and remaining well above the ECB?s 2% target. The resurgence was driven primarily by a sharp escalation in energy prices amid continued Middle East tensions, with energy inflation surging to its highest level since early 2023. Core inflation, however, edged lower to 2.4%, while services inflation also moderated. The stronger headline reading has reinforced expectations for an ECB rate hike this month, with markets fully pricing a 25-basis-point increase.

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