Eurozone consumer prices rose 3.3% in August from a year earlier, the fastest pace in three years, according to Eurostat, the statistical office of the European Union, on the 1st.
The reading marked a clear acceleration from 2.9% in July and the highest since September 2023, when inflation ran at 4.3%. While it far exceeded the European Central Bank's 2% target, the figure fell within the range of market forecasts.
Energy led the increase. With armed conflict between the United States and Iran continuing for more than six months and the Strait of Hormuz remaining blocked, energy prices jumped 14.3%, well above the 10.3% rise recorded the previous month.
Services inflation also added to the momentum, rising 3.0%. Core inflation, which strips out volatile items such as energy, food and alcohol, eased slightly to 2.4% from 2.5% a month earlier. Prices for food, alcohol and tobacco rose 1.2%, unchanged from the previous month.
The acceleration strengthens the case for the ECB to raise interest rates again at its policy meeting this month, following a hike in July.
