Euro zone inflation is back above 3%. Higher interest rates are likely to follow

Euro zone inflation is back above 3%. Higher interest rates are likely to follow — Live Feedhttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-followContinuously updated, source-cited coverage. J.P. Morgan and BNP Paribas Forecast December ECB Rate Hikehttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-followhttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-follow#u57852Sat, 05 Sep 2026 06:50:27 +0000J.P. Morgan and BNP Paribas now expect the European Central Bank to implement a 25-basis-point rate hike in December. This shift follows previous expectations that the tightening cycle would end sooner. The firms cite elevated energy prices and persistent inflation risks as the primary drivers for the revised outlook. This suggests borrowing costs in the euro zone will stay high longer than anticipated, supported by resilient regional economic growth and ongoing concerns regarding energy supplies.Why it mattersEurozone inflation hit 3.3% in August, driven by energy costs. This surge puts press Eurozone inflation exceeds 3% as ECB weighs interest rate hikeshttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-followhttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-follow#u56038Thu, 03 Sep 2026 20:31:46 +0000Eurozone inflation reached 3.3% in August due to rising energy costs, pushing the rate above 3% and toward a three-year high. This surge increases the likelihood of European Central Bank interest rate hikes. Policymaker Nagel indicated a potential increase next week, though he remains cautious. Other officials, such as Simkus, believe a single September hike will not suffice to curb inflation. The price spike has already triggered a selloff in the bond market.Why it mattersPersistent inflation forces the ECB to balance price stability against economic growth. A conflict of attrition in Iran is Eurozone inflation hits 3.3% in August sparking ECB rate hike betshttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-followhttps://www.live-feeds.com/feed/euro-zone-inflation-is-back-above-3-higher-interest-rates-are-likely-to-follow#u55127Thu, 03 Sep 2026 04:16:36 +0000Eurozone inflation rose to 3.3% in August, driven by surging energy prices. This increase brings inflation back above 3% and near a three-year high, strengthening expectations that the European Central Bank will raise interest rates. ECB policymaker Nagel has signaled a hike for next week, though he remains cautious about further moves. Some officials, including Simkus, argue a September hike alone will be insufficient, while others warn that a conflict of attrition in Iran could sustain high inflation levels. The price jump has also contributed to a selloff in bonds.Why it mattersThe ECB is b