German inf rose slightly in August, reinforcing the case for an ECB rate hike
next month. Consumer prices were up 2.9% YoY in August versus 2.8% in July and
the highest since April, but below the median analyst estimate of 3.1%. Energy
was the main driver amid the continued absence of a Middle East peace deal;
services and food eased. Similar data from France and Spain show oil and gas are
lifting regional inflation, increasing pressure on the ECB, which has already
tightened once and is widely expected to hike on Sept 10. Traders are pricing
further monetary tightening into next year.