BRUSSELS / RankWire.AI / – Euro area annual inflation increased to an estimated 3.3% in August 2026, up from 2.9% in July. The month saw a significant rise in energy costs. Eurostat published 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, according to the harmonised index of consumer prices.
Energy experienced the highest annual increase among major components at 14.3%, rising from 10.3% in July. Month-over-month, energy prices also jumped 2.9%. Inflation in services slowed to 3.0% from 3.3% in July. Non-energy industrial goods saw an inflation rise to 1.2% from 0.9%. Inflation for food, alcohol, and tobacco remained steady at 1.2%, unchanged from the previous month.
Less volatile measures that exclude certain categories indicated smaller shifts in August. The inflation rate excluding energy stayed at 2.2%, the same as July. Excluding energy, food, alcohol, and tobacco, the rate decreased slightly to 2.4% from 2.5%. Inflation excluding energy and unprocessed food declined to 2.1% from 2.2%. These measures track consumer price changes after removing specific components from the overall inflation calculation.
Energy inflation accelerates while service inflation moderates
Across the euro area’s 21 member countries, inflation showed considerable variation in August. Lithuania recorded the highest estimate at 5.8%, with Cyprus at 5.2% and Bulgaria at 5.1%. Spain registered 4.5%, Belgium 4.2%, and Luxembourg 4.0%. On the lower end, Estonia was at 1.3%, Malta at 1.9%, and Finland at 2.4%. Germany’s inflation stood at 2.9%, France at 2.7%, and Italy at 3.2%.
Monthly price changes also differed among member states. Belgium experienced a 2.1% increase, Luxembourg rose 1.8%, and Cyprus increased 1.5%. France and Bulgaria each saw a 0.8% rise from July. Ireland, Spain, and Malta each increased by 0.6%. Finland saw a monthly decline of 0.4%, while Slovakia’s prices remained unchanged. Germany’s prices grew by 0.2%, and Italy’s by 0.1%.
The euro area now comprises 21 nations after Bulgaria’s accession
Following Bulgaria’s entry into the eurozone on Jan. 1, 2026, the euro area now includes 21 countries. Data through December 2025 are based on the previous 20-member configuration. From January 2026 onward, figures reflect the expanded group. The European Union’s statistical framework applies a chain-index formula when the composition of the euro area changes. Therefore, the August flash estimate corresponds to the current 21-country membership of the single-currency zone.
The August data remains a preliminary estimate. The comprehensive harmonised consumer-price data is scheduled for release on Sept. 17, 2026. The next flash estimate, which will cover September’s inflation, is due on Oct. 2. The harmonised index measures price changes paid by households for goods and services. Annual inflation compares prices to the same month one year earlier. Monthly inflation tracks changes from the immediately preceding month.