Eurozone Inflation Rises to 2.1% in August

Eurozone annual inflation accelerated to 3.8% in September 2026, up from 3.2% in August and above market expectations of 3.6%, according to preliminary estimates. The rate reached its highest level since September 2023 and remained well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East. Energy inflation jumped to 18.8%, its highest level since January 2023. Price growth also accelerated for services, to 3.2% from 3.0%, and unprocessed food, to 4.0% from 2.7%. Core inflation, which excludes energy and food, rose to 2.5% from 2.4%, in line with expectations. Among the euro area’s largest economies, inflation accelerated in Germany to 3.3% from 2.9%, France to 3.4% from 2.6%, Spain to 5.0% from 4.6%, Italy to 4.1% from 3.2%, and the Netherlands to 3.0% from 2.8%.

Eurozone annual inflation accelerated to 3.2% in August 2026, matching May’s two-and-a-half-year high but coming in slightly below the preliminary estimate of 3.3%. The rate remained well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East. Energy inflation jumped to 14.3%, its highest since January 2023, while inflation for unprocessed food and non-energy industrial goods also accelerated. Services inflation, however, eased to a four-month low of 3.0%, while core inflation, excluding 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%, France to 2.6% from 2.4%, Spain to 4.6% from 3.9%, and Italy to 3.2% from 2.9%. The Netherlands was an exception, with inflation easing to 2.8% from 3.0%.

Eurozone annual inflation accelerated to 3.3% in August 2026 from 2.9% in July, in line with market expectations, according to preliminary estimates. The rate reached its highest level since September 2023 and remained well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East. The data strengthened expectations for an ECB rate hike as soon as this month, with markets fully pricing a 25-basis-point increase to 2.5%. Energy inflation jumped to 14.3%, its highest since January 2023, while unprocessed food and non-energy industrial goods inflation also accelerated. Services inflation, however, eased to a four-month low of 3.0%, while core inflation, excluding energy and food, edged down to 2.4%, below forecasts of 2.5%. Among the euro area’s largest economies, inflation accelerated in Germany to 2.9% from 2.8%, France to 2.7% from 2.4%, Spain to 4.5% from 3.9%, and Italy to 3.2% from 2.9%.