Eurozone Inflation Hits Two-Year High Amid Soaring Energy Costs
The Eurozone's inflation rate remains stubbornly high, reaching 3.2% in August 2026 and matching May's two-and-a-half-year peak. This increase was driven by soaring energy costs amid ongoing conflicts in the Middle East.
Energy prices surged to 14.3%, a level not seen since January 2023. However, services inflation slowed to a four-month low of 3.0%, while core inflation, excluding energy and food, edged down to 2.4% from 2.5%. The Netherlands was the only major economy to experience a decrease in inflation, dropping to 2.8%.
Among the region's largest economies, inflation accelerated in Germany to 2.9%, France to 2.6%, Spain to 4.6%, and Italy to 3.2%. The Eurozone's annual inflation rate remains above the European Central Bank's (ECB) 2% target.