BRUSSELS / RankWire.AI / – Euro area annual inflation increased to approximately 3.3% in August 2026, up from 2.9% in July. The month saw a significant rise in energy costs. Eurostat provided the preliminary estimate on Sept. 1. Inflation had been at 2.8% in June and 2.0% in August 2025. Consumer prices grew by 0.4% from July, as per the harmonised index of consumer prices.
Energy registered the highest yearly increase among major components at 14.3%, rising from 10.3% in July. On a monthly basis, energy prices went up by 2.9%. Service sector inflation slowed to 3.0% from 3.3% in July. Non-energy industrial goods inflation grew 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 at 2.2%, identical to July. The rate excluding energy, food, alcohol, and tobacco decreased slightly to 2.4% from 2.5%. Inflation without energy and unprocessed food fell to 2.1% from 2.2%. These metrics track consumer price changes after removing specific components from the overall inflation figure.
Energy inflation accelerates while services inflation moderates
In August, inflation varied considerably across the 21 euro area member countries. Lithuania experienced 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%. At the lower end, Estonia recorded 1.3%, Malta 1.9%, and Finland 2.4%. Germany’s inflation stood at 2.9%, with France at 2.7% and Italy at 3.2%.
Monthly price changes also varied across nations. Belgium saw a 2.1% increase, Luxembourg 1.8%, and Cyprus 1.5%. France and Bulgaria each experienced a 0.8% rise from July. Ireland, Spain, and Malta each increased by 0.6%, while Finland saw a monthly decline of 0.4%. Slovakia had no change, Germany’s prices rose by 0.2%, and Italy’s increased by 0.1%.
The euro area now includes 21 nations
Following Bulgaria’s accession on Jan. 1, 2026, the euro area now comprises 21 countries. Data through December 2025 reflect the previous 20-member configuration, while figures from January 2026 onward account for the expanded group. The European Union statistical framework employs a chain-index formula to adapt to changes in euro area composition. Consequently, the August flash estimate represents the current 21-country membership of the single-currency zone.
The August figures are preliminary, with full harmonised consumer-price data scheduled for release on Sept. 17, 2026. The next flash estimate, covering September inflation, is set for Oct. 2. The index measures changes in prices paid by households for goods and services. Annual inflation compares prices to the same month in the previous year, while monthly inflation reflects changes from the previous month.