Lithuania recorded the highest annual inflation rate in the euro area in August 2026, at 5.8%, new flash estimates from Eurostat have revealed.
Other countries to report an above-average inflation rate for the month included Cyprus (5.2%), Bulgaria (5.1%) and Spain (4.5%).
At the other end of the spectrum, the lowest annual inflation rate was recorded in Estonia, at 1.3%, followed by Malta (1.9%) and Finland (2.4%).
In terms of the performance of Europe’s biggest economies, Germany recorded an inflation rate of 2.9%, while France stood at 2.7% and Italy at 3.2%.
Euro area annual inflation
Euro area annual inflation is estimated to have increased to 3.3% in August 2026, up from 2.9% in July, according to Eurostat.
On a sector-by-sector basis, energy recorded the highest annual inflation rate, rising to 14.3% in August from 10.3% in July. Services inflation decreased to 3.0%, compared with 3.3% in July, while inflation for non-energy industrial goods increased to 1.2% from 0.9%. Food, alcohol and tobacco inflation remained unchanged at 1.2%.
Energy price increases
The increase in the overall inflation rate followed a rise in energy prices over the year, Eurostat noted. The annual rate for energy had been negative in August 2025, at -2.0%, before moving into positive territory during 2026. It reached 5.1% in April, 10.8% in May, 8.5% in June and 10.3% in July, before reaching 14.3% in August.
If energy is excluded, inflation for the euro area came in at 2.2% in August, unchanged from July. Inflation excluding energy and unprocessed food was 2.1%, compared with 2.2% in July, while inflation excluding energy, food, alcohol and tobacco was estimated at 2.4%, down from 2.5%.
Within food, alcohol and tobacco, processed food, alcohol and tobacco inflation fell to 0.6% in August from 0.7% in July. Unprocessed food inflation increased to 2.7% from 2.4%. Read more here.
Inflation Rates (%) across Europe in August 2026
| Country/Region | Aug-26 Annual Rate | Aug-26 Monthly Rate |
|---|---|---|
| Belgium | 4.2e | 2.1e |
| Bulgaria | 5.1e | 0.8e |
| Germany | 2.9e | 0.2e |
| Estonia | 1.3e | 0.3e |
| Ireland | 3.4e | 0.6e |
| Greece | 3.7e | 0.4e |
| Spain | 4.5e | 0.6e |
| France | 2.7e | 0.8e |
| Croatia | 3.7e | 0.3e |
| Italy | 3.2e | 0.1e |
| Cyprus | 5.2e | 1.5e |
| Latvia | 2.9e | 0.3e |
| Lithuania | 5.8e | 0.1e |
| Luxembourg | 4.0e | 1.8e |
| Malta | 1.9e | 0.6e |
| Netherlands | 2.8e | 0.1e |
| Austria | 2.9e | 0.5e |
| Portugal | 3.6e | 0.3e |
| Slovenia | 3.4 | 0.3 |
| Slovakia | 3.1e | 0.0e |
| Finland | 2.4e | -0.4e |
p provisional
e estimated
