BRUSSELS / RankWire.AI / – Euro area annual inflation climbed to an estimated 3.3% in August 2026, up from 2.9% in July. The month saw a significant rise in energy prices. Eurostat provided the preliminary estimate on Sept. 1. The inflation rate was 2.8% in June and 2.0% in August 2025. Consumer prices grew by 0.4% from July, according to the harmonised index of consumer prices.
The highest annual increase among key components was recorded in energy at 14.3%, a rise from 10.3% in July. Additionally, energy prices went up by 2.9% during the month. Inflation in the services sector slowed to 3.0% from 3.3% in July. Non-energy industrial goods inflation increased to 1.2% from 0.9%, while food, alcohol, and tobacco inflation remained steady at 1.2%, unchanged from the previous month.
Smaller changes were observed in measures excluding certain categories during August. Inflation excluding energy held at 2.2%, the same as in July. When energy, food, alcohol, and tobacco are excluded, the rate eased slightly to 2.4% from 2.5%. Excluding energy and unprocessed food, inflation declined to 2.1% from 2.2%. These measures reflect consumer price movements after removing specific components from the overall inflation index.
Acceleration in energy inflation contrasted with easing in services inflation
In August, inflation rates varied significantly across the euro area’s 21 member states. Lithuania led with an estimate of 5.8%, followed by Cyprus at 5.2% and Bulgaria at 5.1%. Spain registered 4.5%, Belgium 4.2%, and Luxembourg 4.0%. On the lower end, Estonia saw 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s inflation was 2.9%, while France recorded 2.7%, and Italy 3.2%.
Monthly price fluctuations also differed among countries. Belgium experienced a 2.1% increase, Luxembourg 1.8%, and Cyprus 1.5%. France and Bulgaria each saw a 0.8% rise from July. Ireland, Spain, and Malta each increased by 0.6%. Finland saw a decrease of 0.4% month-on-month, while Slovakia’s prices remained unchanged. Germany’s prices increased by 0.2%, and Italy’s by 0.1%.
The euro area now includes 21 nations
Bulgaria’s accession on Jan. 1, 2026, expanded the euro area to encompass 21 member countries. The data through December 2025 reflect the previous composition of 20 countries. From January 2026 onward, figures account for the expanded group. The European Union’s statistical framework employs a chain-index formula to adjust for changes in the euro area’s membership. Consequently, the August flash estimate represents the current 21-country configuration of the currency zone.
Since the August data is preliminary, the full harmonised consumer-price index will be published on Sept. 17, 2026. The next preliminary estimate, covering September’s inflation, is scheduled for Oct. 2. The harmonised index tracks variations in prices paid by households for consumer goods and services. Annual inflation compares prices with the same month last year, while monthly inflation assesses changes from the previous month.
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