Euro Area Inflation Hits 3.3%, Driven by Energy Costs and Oil Supply Concerns

Global inflation pressures remain elevated, driven by rising energy costs and growing concerns over oil supply. The euro area recorded a sharp increase in consumer prices in August 2026, with inflation jumping to 3.3% from 2.9% in July.

The Central Bank of Kenya (CBK) Weekly Bulletin noted that Spain had the highest inflation rate among major euro area economies at 4.5%, followed by Italy at 3.2%, Germany at 2.9%, and France at 2.7%.

Oil prices also increased amid renewed concerns over global supply following rising tensions between the United States and Iran, with Murban crude oil prices rising to Ksh11,136 per barrel on September 3, 2026, from about Ksh10,588 per barrel on August 27, 2026.