[Germany's Inflation Rate Slightly Rises, Adding Reasons for ECB Rate Hike] Germany's inflation slightly increased in August, further strengthening the case for a European Central Bank (ECB) rate hike in September. Consumer prices rose 2.9% year-on-year in August, up from 2.8% in July, marking the highest level since April but below the median forecast of 3.1%. Energy once again became the main driving factor. The Middle East peace agreement remains elusive, while the growth in service and food prices has slowed. Prior to the release of Germany's data, signs from France and Spain already indicated that oil and gas prices are pushing up inflation across the region, increasing pressure on the ECB to take action. ECB officials have already raised rates once and are expected to hike again on September 10. Traders are also betting on further monetary tightening next year. Primoz Dolenc, a member of the ECB Governing Council, stated in an interview last week that the rationale for a September rate hike 'already exists.' According to previous surveys, the eurozone's inflation rate in August is expected to rise to 3.3%. (Sina Finance)