Eurozone inflation rose for a third straight month in August, reaching its highest level in almost three years. According to Eurostat, inflation rose sharply as energy prices climbed by more than 14% compared with a year earlier.
The rise in energy costs in the region is being driven by the Iran war.
These developments have cemented the case for the European Central Bank to raise its key interest rate next week. Markets have now fully priced in another quarter-point hike by the ECB on September 10.