Euro Area Inflation Jumps to 3.2 Percent in August, Energy Costs Surge

(MENAFN) Consumer prices across the euro area rose 3.2% year-on-year in August, edging below the preliminary estimate of 3.3% but marking a sharp acceleration from July, according to final figures released Wednesday by the EU statistical office Eurostat.

The rate climbed from 2.9% in July and stands well above the 2% recorded a year earlier, in August 2025. On a monthly basis, consumer prices rose 0.4%.

Energy costs drove much of the increase, surging 14.3% year-on-year—up sharply from 10.3% in July. Non-energy industrial goods inflation also picked up, rising to 1.2% from 0.9%. Meanwhile, services inflation cooled to 3% from 3.3%, and food, alcohol and tobacco prices slowed to 1.1% from 1.2%. Core inflation, which strips out energy, food, alcohol and tobacco, ticked down to 2.4% from 2.5%.

Services remained the single biggest driver of the euro area's annual inflation rate, contributing 1.43 percentage points, followed by energy at 1.29 points, non-energy industrial goods at 0.30 points, and food, alcohol and tobacco at 0.22 points.

Across the broader EU, annual inflation rose to 3.2% in August from 3% in July, up from 2.4% a year earlier.

Sweden posted the lowest annual inflation rate among EU members at 0.3%, followed by Estonia at 1.3% and Czechia at 1.5%. At the other end of the scale, Romania recorded the highest rate at 6.3%, trailed by Lithuania at 5.6% and the Greek Cypriot Administration at 5.2%.
Compared with July, annual inflation fell in six member states, held steady in one, and rose in 20.

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