BRUSSELS / RankWire.AI / – Euro area annual inflation climbed to an estimated 3.3% in August 2026, up from 2.9% in July. The main driver was a sharp increase in energy prices during the month. Eurostat released the preliminary estimate on Sept. 1. Inflation had been 2.8% in June and 2.0% in August 2025. Consumer prices grew by 0.4% from July, based on the harmonised index of consumer prices.
Energy inflation hit 14.3%, the highest among core components, rising from 10.3% in July. Monthly energy prices increased by 2.9%. Services inflation slowed to 3.0% from 3.3% in July. Non-energy industrial goods saw inflation rise to 1.2% from 0.9%. Food, alcohol, and tobacco inflation remained steady at 1.2%, unchanged from the previous month.
Smaller shifts appeared when excluding certain categories. Inflation without energy stayed at 2.2%, the same as July. Excluding energy, food, alcohol, and tobacco, the rate decreased to 2.4% from 2.5%. Inflation excluding energy and unprocessed food dropped slightly to 2.1% from 2.2%. These figures track consumer price changes after removing specific components from the overall inflation measure.
Energy inflation accelerates while services inflation slows
In August, inflation varied significantly across the 21 euro area countries. Lithuania experienced the highest estimate at 5.8%, followed by Cyprus at 5.2% and Bulgaria at 5.1%. Spain’s rate was 4.5%, Belgium at 4.2%, and Luxembourg at 4.0%. At the lower end, Estonia reported 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s inflation was 2.9%, France stood at 2.7%, and Italy at 3.2%.
Monthly price changes also differed. Belgium saw a 2.1% increase, Luxembourg 1.8%, and Cyprus 1.5%. France and Bulgaria each had a 0.8% rise from July. Ireland, Spain, and Malta each increased by 0.6%. Finland experienced a monthly decrease of 0.4%, while Slovakia’s prices stayed flat. Germany’s prices rose 0.2%, and Italy’s increased by 0.1%.
The euro area now includes 21 member countries
Bulgaria joined the eurozone on Jan. 1, 2026, expanding the area to 21 countries. Data through December 2025 reflect the previous 20-member group. Figures from January 2026 onward account for the new membership. The European Union’s statistical method uses a chain-index formula to adjust for the change in composition. The August flash estimate therefore reflects the current 21-country configuration.
The August data remains preliminary, with the full harmonised consumer-price index due to be released on Sept. 17, 2026. The next flash estimate, covering September inflation, is set for Oct. 2. The index measures price changes paid by households for goods and services. Yearly inflation compares prices to the same month last year. Monthly inflation reflects changes from the previous month.