Euro Zone Inflation Surges Above 3% Amid Rising Energy Costs

The euro zone's inflation rate has surpassed 3% for the first time since September 2024, according to a flash estimate from Eurostat. The increase is attributed to rising energy prices, which accelerated to 14.3% in August compared to 10.3% in July.

This news comes as a second blow to hard-hit businesses that are already struggling with high energy costs. Core inflation, which excludes the volatile components of energy, food, alcohol, and tobacco, dipped slightly to 2.4% from 2.5%.

The statistics office Eurostat published its flash estimate on Tuesday, revealing that euro area annual inflation is expected to be 3.3% in August 2026, up from 2.9% in July.