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 • Sep 1, 2026

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 • Sep 1, 2026

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 • Sep 1, 2026

More Signs Of Growth Across AI And Europe

Europe shows tentative signs of improvement, but the recovery remains uneven. AI investment is increasingly influencing U.S. capital spending and trade.

Seeking Alpha • Aug 29, 2026

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

ECB saw a future hike as likely at July meeting

European Central ​Bank policymakers meeting ‌last month saw another ​interest rate ​increase as likely ⁠needed to ​bring inflation ​back down to 2%, the ECB's ​account of ​the meeting showed ‌on ⁠Thursday.

Reuters • 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

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

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