BRUSSELS / RankWire.AI / – Euro area annual inflation reached an estimated 3.3% in August 2026, rising from 2.9% in July. During this month, energy prices surged notably. Eurostat announced the preliminary estimate on Sept. 1. 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.
Among the main components, energy registered the highest annual rate at 14.3%, up from 10.3% in July. Energy prices also grew by 2.9% over the month. Services inflation declined to 3.0% from 3.3% in July. Meanwhile, inflation for non-energy industrial goods rose to 1.2% from 0.9%. The inflation rate for food, alcohol, and tobacco remained steady at 1.2%, unchanged from the previous month.
Adjusted measures that exclude selected categories showed smaller fluctuations in August. Inflation excluding energy remained 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 fell to 2.1% from 2.2%. These figures track consumer price changes after removing specific components from the overall inflation calculation.
Energy inflation accelerates while services inflation diminishes
Inflation rates varied significantly across the euro area’s 21 member states in August. Lithuania reported the highest estimate at 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’s inflation was 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s rate stood at 2.9%, France was at 2.7%, and Italy reached 3.2%.
Monthly price fluctuations also differed across countries. Belgium experienced a 2.1% increase, Luxembourg rose 1.8%, and Cyprus saw a 1.5% boost. France and Bulgaria each recorded a 0.8% rise from July. Ireland, Spain, and Malta each saw a 0.6% increase. Finland experienced a monthly decrease of 0.4%, while Slovakia’s prices remained stable. Germany’s prices increased by 0.2%, and Italy’s by 0.1%.
The euro area now encompasses 21 countries
The euro area expanded to include 21 nations after Bulgaria joined the currency union on Jan. 1, 2026. Data up to December 2025 reflect the previous 20-member configuration. From January 2026 onward, figures account for the larger group. The European Union’s statistical approach employs a chain-index formula to adjust for changes in the euro area’s composition. Consequently, the August flash estimate accurately represents the current 21-country membership within the single currency zone.
The August data remains a preliminary estimate, with comprehensive harmonised consumer-price data scheduled for publication on Sept. 17, 2026. The subsequent flash estimate for September inflation is due on Oct. 2. The harmonised index measures price variations paid by households for goods and services. Annual inflation compares prices to the same month in the previous year, while monthly inflation tracks changes from the immediately preceding month.