EU inflation at three-year high at 3.3% in August

The main cause was the near total closure of the strait of Hormuz, which has sent energy prices soaring worldwide as the oil flowing from the strait amounts to 20 percent of the world’s supply.

And the outlook doesn’t look too bright, according to Leo Barincou of Oxford Economics, who predicted that:

“Inflation should remain well above target into next year, as higher gas and food prices put additional upward pressure on the index,”

The European Central Bank (ECB) has also confirmed that it will be raising interest rates again after raising them in June to combat inflation, seeing it as the only, yet temporary, solution to the problem.

The bank’s chief, Christine Lagarde, warned in July that the energy shock from the conflict “could intensify further”.