Eurozone Inflation Hits Two-Year High on Rising Energy Prices

The Eurozone's annual inflation rate reached a two-and-a-half-year high of 3.2% in August 2026, surpassing July's 2.8%. This increase was largely driven by rising energy prices, which hit a high of 14.3%, the highest level since January 2023.

Services inflation slowed to 3.0%, its lowest point in four months, while core inflation, excluding energy and food, decreased to 2.4% from 2.5%. Among the region's largest economies, Germany saw a slight increase to 2.9%, France rose to 2.6%, Spain jumped to 4.6%, and Italy reached 3.2%.

The data suggests that energy prices continue to be a major contributor to inflation in the Eurozone.