Eurozone inflation reached 3.3% in August, driven by rising energy costs linked to disruptions in the Strait of Hormuz.
Key facts
- •Eurozone headline inflation reached 3.3% in August 2026.
- •Energy prices rose by 14.3% year-on-year, up from 10.3% in July.
- •Services inflation eased to 3.0% from 3.3% the previous month.
- •Lithuania recorded the highest inflation among eurozone members at 5.8%.
- •Markets expect the European Central Bank to raise interest rates by 0.25 percentage points on September 10.
Eurozone inflation rose to 3.3% in August 2026, up from 2.9% in July, according to flash estimates from Eurostat. The increase was primarily fueled by a 14.3% jump in energy prices, which were impacted by global oil and gas price surges following the war in Iran and shipping disruptions in the Strait of Hormuz.
By the numbers
Sector performance and core inflation
While energy costs accelerated, other sectors showed different trends. Food, alcohol, and tobacco prices rose by 1.2%, remaining steady from July. Services inflation, a key metric for the European Central Bank, decreased from 3.3% to 3.0%. Core inflation, which excludes volatile items like energy and food, also saw a slight decline, dropping from 2.5% to 2.4%.
Regional variations and ECB outlook
Inflation rates varied across the eurozone, with Lithuania reporting the highest rate at 5.8% and Estonia the lowest at 1.3%. Among major economies, Spain recorded 4.5% inflation, while France and Germany saw rates of 2.7% and 2.9%, respectively. With inflation remaining above the European Central Bank's 2% target, markets anticipate a 0.25 percentage point interest rate hike at the upcoming September 10 meeting.
Timeline
- JulyEurozone inflation was recorded at 2.9%.
- AugustEurozone inflation climbed to 3.3%.
- 10 SeptemberThe European Central Bank is scheduled to meet to discuss potential interest rate hikes.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business.
