European financial ministers and officials bristled on Monday over Russia's participation at the G20 finance meeting in Asheville, North Carolina. ^[1] Eurostat reported on September 1, 2026, that inflation in the Eurozone rose to an estimated 3.3% in August, up from 2.9% in July. ^[2] Joahim Nagel, a member of the ECB Governing Council and President of the Bundesbank, stated that the European Central Bank will likely raise interest rates at its meeting next week. ^[3] Germany's finance minister Lars Klingbeil said there could be no normalization of relations with Moscow while its war against Ukraine continued. ^[4] Lars Klingbeil said Europe was preparing a further package of sanctions against Russia and was hoping for close cooperation with Washington on measures. ^[5] Russian Finance Minister Anton Siluanov attended the meeting in Asheville, North Carolina, along with representatives of the Russian Central Bank. ^[6] Energy costs emerged as the primary driver of inflation, rising by 14.3% in August compared to 10.3% in July. ^[7] The European Central Bank (ECB) is expected to decide on interest rates on September 10, 2026, and the rising inflation is anticipated to influence this decision. ^[8] Christine Lagarde, President of the European Central Bank, is scheduled to meet with the Governing Council next week to decide on another interest rate hike based on the latest inflation data. ^[9] Energy prices, including fuels, gas, and electricity, increased by 14.3% in August 2026, serving as the main driver of the inflation surge. ^[10] Spain recorded an annual inflation rate of 4.5% in August 2026, the highest among major Eurozone economies. ^[11] Joahim Nagel assessed that rising yields in financial markets complicate the situation for the ECB because higher financing costs can affect economic activity, investments, and borrowing conditions for states and companies. ^[12]