Consumer price inflation in the Euro area increased to 2.1% in August 2025, marginally exceeding both the July rate and market forecasts of 2.0%, according to preliminary figures. The cost of unprocessed food rose by 5.5%, up from 5.4% in July, while energy prices decreased by 1.9%, which was a smaller reduction compared to the previous month's 2.4% decline. Inflation in services moderated to 3.1% from 3.2%, and the price increase for processed food, alcohol, and tobacco slightly reduced to 2.6% from 2.7%. Inflation for non-energy industrial goods remained stable at 0.8%. Core inflation, which excludes the categories of energy, food, alcohol, and tobacco, and thus provides a clearer long-term view of inflation trends, continued to hold steady at 2.3%, its lowest point since January 2022.