Euro Area Inflation Hits 3.3% as Energy Costs Surge

The euro area annual inflation rate is expected to rise to 3.3% in August 2026, according to a flash estimate from Eurostat.

This marks an increase from the 2.9% seen in July and is driven by rising energy costs, with an annual rate of 14.3% expected for energy in August, up from 10.3% the previous month.

The services sector is also experiencing a significant impact, with an annual rate of 3.0%, although this is slightly lower than the 3.3% seen in July.