Eurozone annual inflation accelerated to 3.2% in August 2026, matching May’s two-and-a-half-year high but coming in slightly below the preliminary estimate of 3.3%. The rate remained well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East. Energy inflation jumped to 14.3%, its highest since January 2023, while inflation for unprocessed food and non-energy industrial goods also accelerated. Services inflation, however, eased to a four-month low of 3.0%, while core inflation, excluding energy and food, edged down to 2.4% from 2.5%. Among the euro area’s largest economies, inflation accelerated in Germany to 2.9% from 2.8%, France to 2.6% from 2.4%, Spain to 4.6% from 3.9%, and Italy to 3.
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