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 significant surge in energy prices. Eurostat issued the preliminary estimate on Sept. 1. Previously, inflation was recorded at 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 recorded the fastest annual increase among primary categories at 14.3%, compared to 10.3% in July. Month-on-month, energy prices rose by 2.9%. Meanwhile, inflation in services slowed to 3.0% from 3.3% in July. Inflation for non-energy industrial goods climbed to 1.2% from 0.9%. Food, alcohol, and tobacco inflation remained steady at 1.2%, unchanged from the previous month.
Smaller fluctuations were observed in measures that exclude certain categories during August. Inflation excluding energy held steady at 2.2%, the same as in July. The rate excluding energy, food, alcohol, and tobacco decreased slightly to 2.4% from 2.5%. Inflation excluding energy and unprocessed food declined to 2.1% from 2.2%. These indicators track consumer price changes after removing specific components from the overall inflation measure.
Energy inflation accelerates as services inflation diminishes
Across the euro area’s 21 member nations, inflation rates varied considerably in August. Lithuania led with an estimated 5.8%, followed by Cyprus at 5.2% and Bulgaria at 5.1%. Spain registered 4.5%, Belgium 4.2%, and Luxembourg 4.0%. At the lower end, Estonia recorded 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s rate was 2.9%, France at 2.7%, and Italy at 3.2%.
Monthly price changes also differed among countries. Belgium experienced a 2.1% increase, while Luxembourg rose 1.8% and Cyprus 1.5%. France and Bulgaria each saw a 0.8% rise since July. Ireland, Spain, and Malta each saw increases of 0.6%. Conversely, Finland experienced a decline of 0.4% month-on-month, and Slovakia showed no change. Germany’s prices grew by 0.2%, with Italy up by 0.1%.
The euro area now encompasses 21 member states
Following Bulgaria’s accession on Jan. 1, 2026, the euro area expanded to include 21 nations. Data through December 2025 reflect the previous 20-member structure. From January 2026 onward, figures account for the full 21-member group. The European Union’s statistical framework applies a chain-index approach when the composition of the euro area changes. Consequently, the August preliminary estimate accurately represents the current 21-country configuration of the currency union.
As this is a preliminary estimate, the detailed harmonised consumer-price data is scheduled for publication on Sept. 17, 2026. The subsequent preliminary forecast for September inflation will be issued on Oct. 2. The index measures variations in prices paid by households for goods and services. Annual inflation compares current prices to those of the same month in the previous year, while monthly inflation assesses changes from the preceding month.