Eurostat reported August CPI rose 3.3% YoY, up from 2.9% in July. This is the highest rate since September 2023. The increase is driven partly by the Iran war and stronger eurozone economic activity. This supports ECB tightening. Markets expect a 25 bps hike on Sept. 10 and further increases. A September hike would make the ECB the most hawkish G7 central bank.
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