Eurozone Inflation Jumps to 3.3% in August as Energy Prices Surge

Eurostat's flash estimate put euro area annual HICP inflation at 3.3% in August 2026, up sharply from 2.9% in July and the highest reading since September 2023. Energy prices rose 14.3% year-on-year (up from 10.3% in July), driven by global oil and gas price pressure linked to the war in Iran and disruption to shipping through the Strait of Hormuz; services inflation eased to 3.0% from 3.3%, and core inflation (excluding energy and food) slipped to 2.4%. Non-energy industrial goods rose 1.2% (from 0.9%) and food/alcohol/tobacco held at 1.2%. Spain posted the highest national rate among major economies at 4.5%. The reading reinforces market expectations the ECB Governing Council will raise its deposit facility rate by 25bp, to 2.5%, at its September 10 meeting.