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 issued the preliminary estimate on Sept. 1. Previously, the inflation rate stood at 2.8% in June and 2.0% in August 2025. Consumer prices increased by 0.4% from July, according to the harmonised index of consumer prices.
Among the primary components, energy experienced the highest annual growth rate at 14.3%, rising from 10.3% in July. During the month, energy prices also climbed by 2.9%. Meanwhile, inflation for services slowed to 3.0% from 3.3% in July. The inflation rate for non-energy industrial goods increased to 1.2% from 0.9%, while food, alcohol, and tobacco inflation remained steady at 1.2%, unchanged from the previous month.
Smaller shifts were observed in measures that exclude certain categories in August. The inflation rate excluding energy remained at 2.2%, consistent with July. Excluding energy, food, alcohol, and tobacco, the rate eased slightly to 2.4% from 2.5%. Inflation excluding energy and unprocessed food decreased to 2.1% from 2.2%. These measures track consumer price changes after removing specific components from the overall inflation measure.
Energy inflation accelerates while services inflation slows
In August, inflation varied significantly across the euro area’s 21 member countries. Lithuania recorded the highest estimate at 5.8%, followed by Cyprus at 5.2% and Bulgaria at 5.1%. Spain stood 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 registered 2.9%, while France stood at 2.7% and Italy at 3.2%.
Monthly price movements also differed across nations. Belgium experienced a 2.1% increase, Luxembourg rose by 1.8%, and Cyprus increased by 1.5%. France and Bulgaria each saw a 0.8% rise from July. Ireland, Spain, and Malta each increased by 0.6%. Finland experienced a decline of 0.4% for the month, while Slovakia saw no change. Germany’s prices rose by 0.2%, and Italy’s increased by 0.1%.
The euro area now includes 21 member states
The euro zone expanded to encompass 21 countries following Bulgaria’s accession on Jan. 1, 2026. Data through December 2025 reflects the previous 20-member composition. From January 2026 onward, figures account for the newly expanded group. The European Union’s statistical methodology applies a chain-index formula when the euro area’s composition changes. Consequently, the August flash estimate reflects the current 21-country configuration of the single-currency zone.
The August data remains a preliminary estimate, with the full harmonised consumer-price data scheduled for release on Sept. 17, 2026. The next flash estimate, which will cover September inflation, is set for Oct. 2. The harmonised index measures how prices paid by households for goods and services change over time. Annual inflation compares prices with those of the same month one year earlier, while monthly inflation indicates price changes from the previous month.