Euro Area Annual Inflation Hits 3.8%, Energy Prices Soar

The euro area's annual inflation rate surged to 3.8% in September 2026, up from 3.2% in August, according to a flash estimate from Eurostat.

This acceleration is largely driven by energy prices, which recorded the highest annual rate among main inflation components at 18.8% in September, compared to 14.3% in August.

Services inflation also ticked up to 3.2% in September from 3.0% in August, while food, alcohol, and tobacco prices increased to 1.4% from 1.1%. Non-energy industrial goods inflation fell to 1.1% from 1.2% in August.

The highest annual inflation rate among euro area economies was posted by Lithuania at 6.1%, followed closely by Bulgaria at 5.6% and Cyprus and Luxembourg at 5.2% each.