BRUSSELS / RankWire.AI / – Euro area annual inflation increased to an estimated 3.3% in August 2026, rising from 2.9% in July. The month saw a notable climb in energy costs. Eurostat issued the preliminary estimate on Sept. 1. The inflation rate had been 2.8% in June and 2.0% in August 2025. Consumer prices went up by 0.4% from July, according to the harmonised index of consumer prices.
Energy experienced the highest annual growth among key components at 14.3%, up from 10.3% in July. Additionally, energy prices increased by 2.9% on a monthly basis. The inflation rate for services decreased slightly to 3.0% from 3.3% in July. Inflation for non-energy industrial goods rose to 1.2% from 0.9%. Food, alcohol, and tobacco inflation remained steady at 1.2%, with no change from the previous month.
Smaller variations were observed in measures that exclude certain categories during August. The inflation rate excluding energy was 2.2%, remaining unchanged from July. The rate excluding energy, food, alcohol, and tobacco decreased to 2.4% from 2.5%. Excluding energy and unprocessed food, inflation fell to 2.1% from 2.2%. These measures reflect consumer price changes after specific components are removed from the overall inflation index.
Energy inflation accelerates as services inflation slows
In August, inflation rates varied significantly across the 21 member countries of the euro area. Lithuania recorded the highest estimate at 5.8%, followed by Cyprus at 5.2% and Bulgaria at 5.1%. Spain’s inflation was at 4.5%, Belgium at 4.2%, and Luxembourg at 4.0%. On the lower end, Estonia reported 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 varied across nations. Belgium experienced a 2.1% increase, Luxembourg rose by 1.8%, and Cyprus saw a 1.5% rise. France and Bulgaria each saw a 0.8% increase from July. Ireland, Spain, and Malta each registered a 0.6% growth. Finland experienced a monthly decline of 0.4%, while Slovakia’s prices remained stable. Germany’s prices increased by 0.2%, and Italy’s by 0.1%.
Eurozone now expanded to include 21 nations
Following Bulgaria’s accession to the currency union on Jan. 1, 2026, the euro area now encompasses 21 countries. Data through December 2025 reflect the previous 20-member composition, while figures from January 2026 onward account for the expanded group. The European Union statistical methodology employs a chain-index formula when the composition of the euro area changes. Consequently, the August flash estimate accurately represents the current 21-country membership of the single-currency zone.
The August figures are preliminary, with comprehensive harmonised consumer-price data scheduled for release on Sept. 17, 2026. The next flash estimate, covering September inflation, is due on Oct. 2. The harmonised index measures the variations in prices paid by households for consumer goods and services. Annual inflation compares prices with the same month one year earlier, while monthly inflation assesses changes from the previous month.