BRUSSELS / RankWire.AI / – Euro area annual inflation reached an estimated 3.3% in August 2026, up from 2.9% in July. The month saw a notable surge in energy prices. Eurostat published the preliminary estimate on Sept. 1. Previously, the inflation rate was 2.8% in June and 2.0% in August 2025. Consumer prices increased by 0.4% from July, based on the harmonised index of consumer prices.
Energy registered the highest annual growth among the key components at 14.3%, rising from 10.3% in July. Monthly energy prices also climbed by 2.9%. Inflation in services slowed down slightly to 3.0% from 3.3% in July. Inflation for non-energy industrial goods went up to 1.2% from 0.9%. Meanwhile, inflation for food, alcohol, and tobacco remained steady at 1.2%, unchanged from the previous month.
Smaller fluctuations were observed in measures excluding specific categories during August. Inflation excluding energy stayed at 2.2%, the same as in July. The rate excluding energy, food, alcohol, and tobacco eased slightly to 2.4% from 2.5%. When energy and unprocessed food are excluded, inflation declined to 2.1% from 2.2%. These measures track consumer price changes after removing certain components from the overall inflation index.
Rising energy prices contrast with easing service inflation
In August, inflation rates varied considerably across the euro area’s 21 member states. 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%. On the lower end, Estonia recorded 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s inflation stood at 2.9%, France at 2.7%, and Italy at 3.2%.
Monthly price changes also differed across these nations. Belgium experienced a 2.1% increase, Luxembourg grew by 1.8%, and Cyprus rose by 1.5%. France and Bulgaria each saw a 0.8% rise from July. Ireland, Spain, and Malta all increased by 0.6%. Finland saw a monthly decline of 0.4%, Slovakia’s prices remained stable, Germany’s prices grew by 0.2%, and Italy’s by 0.1%.
The euro area now consists of 21 nations
Following Bulgaria’s accession on Jan. 1, 2026, the euro area now includes 21 countries. Data through December 2025 reflect the previous 20-member composition. From January 2026 onward, figures account for the expanded group. The European Union’s statistical framework applies a chain-index formula when the euro area’s composition changes, so the August flash estimate accurately reflects the current 21-country membership.
The August figures are preliminary, with the full harmonised consumer-price data scheduled for release on Sept. 17, 2026. The next flash estimate, which will cover September’s inflation, is set for Oct. 2. The harmonised index measures price changes paid by households for consumer goods and services. Annual inflation compares prices to the same month one year prior, while monthly inflation assesses changes from the previous month.