Eurozone Inflation Jumps to 3.3%, an ECB Rate Hike Now Looks Likely
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Eurozone inflation rose in August, moving to 3.3% year on year from 2.9% in July and lifting price pressure above the ECB’s 2.0% target. Markets are pricing in an ECB key rate of 2.5%, with a rate increase next week described as highly likely and decided next Thursday. The split between cooling core inflation and rising headline energy-driven inflation makes the policy call tougher, while higher yields and borrowing costs feed through to debt-sensitive tech valuations.