Eurozone Inflation Accelerates to 3.2%, but Core Pressures Ease

The Eurozone Consumer Price Index (CPI) finalized at 3.2% in August, surpassing its preliminary estimate of 3.3%, but with a notable twist: core and services pressures are easing.

According to the final data from Eurostat, energy inflation was the primary driver behind the acceleration, jumping from 10.3% to 14.3% year-over-year. This increase contributed 1.29 percentage points to overall inflation.

Meanwhile, core inflation excluding energy, food, alcohol, and tobacco eased from 2.5% to 2.4%, while services inflation slowed from 3.3% to 3.0%. These developments suggest that domestic pressure is moderating, but the scale of the energy rise and its spread across member states increase the risk of second-round effects through wages, pricing decisions, and inflation expectations.