BRUSSELS / RankWire.AI / – Euro area annual inflation increased to an estimated 3.3% in August 2026, up from 2.9% in July, driven mainly by a sharp rise in energy prices during the month. Eurostat issued the preliminary estimate on Sept. 1, noting the inflation rate was 2.8% in June and 2.0% in August 2025. Consumer prices rose 0.4% from July, according to the harmonised index of consumer prices.
Energy registered the highest annual change among the main components at 14.3%, up from 10.3% in July, with energy prices also climbing 2.9% on a monthly basis. Meanwhile, services inflation slowed to 3.0% from 3.3% in July. Inflation for non-energy industrial goods increased to 1.2% from 0.9%, while food, alcohol, and tobacco inflation held steady at 1.2%, unchanged from the previous month.
Smaller variations were observed in measures that exclude certain categories, with inflation excluding energy remaining at 2.2%, the same as in July. The rate excluding energy, food, alcohol, and tobacco eased slightly to 2.4% from 2.5%. Inflation excluding energy and unprocessed food decreased to 2.1% from 2.2%. These figures track consumer price changes after specific components are removed from the overall inflation index.
Energy inflation accelerates while services inflation slows
In August, inflation across the 21 euro area member countries varied significantly. Lithuania reported the highest estimate at 5.8%, followed by Cyprus at 5.2% and Bulgaria at 5.1%. Spain stood at 4.5%, Belgium at 4.2%, and Luxembourg at 4.0%. At the lower end, Estonia registered 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s inflation was 2.9%, with France at 2.7% and Italy at 3.2%.
Monthly price changes also differed across nations, with Belgium experiencing 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 recorded a monthly decline of 0.4%, Slovakia showed no change, Germany rose 0.2%, and Italy’s prices went up 0.1%.
The euro area now includes 21 countries
Following Bulgaria’s accession to the currency bloc on Jan. 1, 2026, the euro area now comprises 21 nations. Data through December 2025 reflect the previous 20-member composition, while figures from January 2026 onward account for the expanded group. The European Union’s statistical framework employs a chain-index method when the euro area’s composition changes, meaning the August flash estimate accurately represents the current 21-country configuration of the single currency zone.
The August figures are still preliminary, with the full harmonised consumer-price data scheduled for release on Sept. 17, 2026. The next flash estimate, which will cover September inflation, is set for Oct. 2. The harmonised index measures shifts in prices paid by households for consumer goods and services, with annual inflation comparing prices to the same month one year prior, and monthly inflation tracking changes from the previous month.