BRUSSELS / RankWire.AI / – Euro area annual inflation climbed to an estimated 3.3% in August 2026, compared to 2.9% in July. The month saw a significant increase in energy prices. Eurostat issued 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, based on the harmonised index of consumer prices.
Energy experienced the fastest annual growth among the main components at 14.3%, up from 10.3% in July. Monthly, energy prices increased by 2.9%. The inflation rate for services declined slightly to 3.0% from 3.3% in July. Non-energy industrial goods inflation rose to 1.2% from 0.9%. Inflation for food, alcohol, and tobacco remained steady at 1.2%, the same as the previous month.
Smaller fluctuations were observed in measures that exclude certain categories during August. Inflation excluding energy stayed at 2.2%, unchanged from July. The rate excluding energy, food, alcohol, and tobacco decreased slightly to 2.4% from 2.5%. Inflation excluding energy and unprocessed food dropped to 2.1% from 2.2%. These measures track consumer price changes after specific components are omitted from the overall index.
Energy inflation accelerates while services inflation moderates
In August, inflation rates varied significantly across the euro area’s 21 member countries. Lithuania reported 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 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 movements also showed variation among countries. Belgium experienced a 2.1% increase, while Luxembourg’s prices rose by 1.8% and Cyprus by 1.5%. France and Bulgaria each saw a 0.8% increase from July. Ireland, Spain, and Malta each recorded a 0.6% rise. Finland experienced a monthly decline of 0.4%, with Slovakia showing no change. Germany’s prices increased by 0.2%, and Italy’s by 0.1%.
The euro area now includes 21 countries
After Bulgaria joined the currency union on Jan. 1, 2026, the euro area expanded to encompass 21 member states. Data through December 2025 reflect the previous 20-member configuration. From January 2026 onward, figures cover the enlarged group. The European Union’s statistical framework applies a chain-index method when the euro area’s composition changes, meaning the August flash estimate represents the current 21-member structure of the single-currency zone.
The August data remains a preliminary estimate, with the full harmonised consumer-price index scheduled to be released on Sept. 17, 2026. The next preliminary figure, which will cover September’s inflation, is due on Oct. 2. The index measures price changes paid by households for goods and services. The annual inflation compares prices to the same month in the previous year, while monthly inflation tracks changes from the month immediately before.