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

Inflation in the euro area hit 3.3% in August after prints of 2.9% in July and 2.8% in June, largely due to higher energy prices linked to the Iran war. Markets expect the European Central Bank will raise interest rates by a quarter percentage point in response, following its June hike.

CNBC • a day ago

ECB says energy-led inflation spike justifies June rate hike

The spike in euro zone inflation since the start of the war in Iran has almost ​entirely been driven by higher energy prices, justifying the ‌European Central Bank's small increase in interest rates in June, new ECB research showed on Tuesday.

Reuters • Sep 1, 2026

European Natural Gas Extends Climb on Supply Tightness, Elevated Demand

European natural gas prices rose as U.S.-Iran military escalations spurred supply fears, as European gas inventories were at 65.09% capacity.

WSJ • a day ago

Eurozone Inflation Climbs to Near Three-Year High Ahead of ECB Meeting

Eurozone inflation rose for a third straight month in August, reinforcing expectations that the European Central Bank will raise its key interest rate next week.

WSJ • a day ago

Eurozone Businesses More Upbeat Despite Prolonged War in Middle East

Businesses and consumers felt more positive about their prospects in August, a boost for demand in the face of persistent uncertainty about the duration and intensity of the Iran war.

WSJ • Aug 28, 2026

Eurozone Bond Yields Edge Up as Gas Prices Become a Concern

Eurozone government bond yields opened slightly higher as focus switched to elevated gas prices rather than falling oil prices.

WSJ • Aug 27, 2026

Bank Lending to Eurozone Businesses Fell Again in July

Rising borrowing costs might be weakening the bloc's economy ahead of another expected rate rise.

WSJ • Aug 27, 2026

Interest rates must rise further, ECB's Schnabel tells Bloomberg

European Central Bank board member ​Isabel Schnabel said ‌interest rates must rise further as ​the conflict ​in the Middle East ⁠drags on ​and strong euro-zone ​economy pose upside risks to inflation, in an ​interview to ​Bloomberg News published on ‌Wednesday.

Reuters • Aug 26, 2026

Stock Market Bargains Are Hiding in This Overlooked Place

European companies just had their best earnings season in years. Investors are starting to notice.

WSJ • Aug 21, 2026

Novonesis Leads Europe's Stoxx 600 on Sales Beat, Guidance Raise

Stock in the company—which develops enzymes, probiotics and other biological products—jumped after its grew 9%, ahead of consensus estimates.

WSJ • Aug 20, 2026