Energy Inflation Leaves Central Banks With an Awkward Choice

Euro-area inflation is accelerating as the energy shock from the Iran war feeds through consumer prices, putting the European Central Bank under pressure to consider another rate rise. In the United States, August core PCE inflation was 3%, below the 3.3% economists expected, easing some pressure on the Federal Reserve.

Headwinds

• Europe’s energy bill: Inflation rose faster than expected in some of the euro zone’s largest economies; if fuel costs keep...