Eurozone Inflation Rises to 3.3% in August, Bolstering Case for Further ECB Rate Hike

Euro area annual inflation is estimated to have risen to 3.3% in August 2026, up from 2.9% in July, according to a flash estimate from Eurostat. This increase was primarily driven by higher energy prices, which saw an annual rate of 14.3% in August. New research from the European Central Bank (ECB) indicated that the inflation spike since the start of the war in Iran has been almost entirely energy-led, justifying its June interest rate increase and cementing expectations for another hike in September.