Inflation hits 3.2%, highest since 2023: Are ECB rate hikes inevitable?

Inflation in the Eurozone reached 3.2% in May, marking its highest level since 2023, largely due to rising energy prices and increased costs in services. This uptick has heightened expectations for an imminent rate hike by the European Central Bank (ECB) as officials aim to curb inflation. The market's anticipation of this move suggests a shift in monetary policy, which could have significant implications for borrowing costs, economic growth, and consumer spending in the region.