Olli Rehn, chief executive of the Bank of Finland, stated at a government budget meeting on Tuesday that the Eurozone economy has proven more resilient to shocks than initially expected during the start of the Middle East crisis. ^[1] Eurostat published data on Tuesday indicating that annual inflation in the Eurozone rose to 3.3% in August. ^[2] The European Central Bank is expected to raise interest rates by 0.25 percentage points next week to 2.5%. ^[3] Olli Rehn, a member of the Executive Board of the European Central Bank, warned that geopolitical risks could reignite price pressures in the Eurozone. ^[4] Inflation risks are assessed as upward while risks to economic growth are downward, with no current signs of secondary effects from the energy price shock. ^[5] Rehn indicated that Finland's economic recovery appears stronger than previously estimated, driven by strong exports and industrial production, though the housing construction slump continues. ^[6] The Bank of Finland's presentation noted that massive AI investments are accelerating the global economy, but significant business cash flows are no longer sufficient to fund these investments, leading tech companies to tap debt markets. ^[7] August marked the sixth consecutive month that inflation in the 21 countries of the Eurozone exceeded the medium-term target of 2% set by the ECB. ^[8] This anticipated rate increase would be the second interest rate hike in 2023. ^[9] Disruptions to oil and natural gas shipments via sea routes risk upending central bank monetary policy calculations. ^[10] Eurozone economic strategists are on high alert regarding a new risk of fracture in global supply chains driven by rising military tensions in the Middle East. ^[11] Olli Rehn stated that major disruptions in the Strait of Hormuz cannot be viewed as a temporary slowdown and could leave lasting scars on global trade networks. ^[12]