Eurozone annual inflation rose to 3.2% in August 2026, matching May’s two-and-a-half-year high but coming in just below the preliminary estimate of 3.3%. The rate remained significantly above the ECB’s 2% target, driven primarily by a sharp increase in energy costs amid ongoing conflict in the Middle East. Energy inflation surged to 14.3%, its highest level since January 2023, while price growth for unprocessed food and non-energy industrial goods also picked up. By contrast, services inflation eased to a four-month low of 3.0%, and core inflation, which excludes energy and food, edged down to 2.4% from 2.5%.
Among the euro area’s largest economies, inflation accelerated in Germany to 2.9% from 2.8%, in France to 2.6% from 2.4%, in Spain to 4.6% from 3.9%, and in Italy to 3.2% from 2.9%. The Netherlands was a notable exception, with inflation slowing to 2.8% from 3.0%.
