Inflation in the Eurozone increased to 3.3 percent in August, driven by a surge in energy prices due to the ongoing war in Iran, according to the latest report from the European Statistical Office.

The inflation rate of the harmonized indices of consumer prices (the equivalent of the American consumer price index, or CPI) increased from 2.9 percent in July, with higher energy prices accounting for much of the increase. Energy costs are up 14.3 percent from the previous year, a result of the supply shock created by the ongoing closure of the Strait of Hormuz to oil and gas exports from the Persian Gulf. Excluding energy, annualized inflation in August hit a more modest 2.2 percent.

With no end to the Iran War in sight, the uptick in inflation is expected to push the European Central Bank to raise its benchmark rates by a quarter of a percentage point to 2.5 percent during its next meeting on September 10.