Eurozone inflation 3.3% in August as markets price ECB hike

Business Sep 01, 2026

Inflation in the eurozone climbed to 3.3% in August, up from 2.9% in July, mostly because energy prices shot up: think higher costs for oil and gas, plus refiners charging more.

With this spike, financial investors have already priced in the European Central Bank (ECB) to raise its deposit rate to 2.5% on September 10, following a similar move earlier in June.

Eurozone core inflation dips to 2.4%

Core inflation, which leaves out food and fuel, actually dipped a bit to 2.4%.

Slower growth in service prices gave policymakers some breathing room, but rising energy costs linked to global tensions could keep inflation stubbornly high.

Markets are betting the ECB will go for two more rate hikes over the next year, though policymakers may pause unless things get worse.