Inflation across the Euro area continues to climb significantly. According to preliminary estimates released by Eurostat, the statistical office of the European Union, the annual inflation rate is expected to reach 3.3% in August, an increase from 2.9% recorded in July.
The “core inflation,” which excludes energy and food items, experienced a slight dip, falling from 2.5% to 2.4%. This figure is highly significant for the European Central Bank (ECB), as the central bank ultimately aims for an inflation level around two percent.
Looking at specific categories for August, energy inflation is projected to be 14.3%, up notably from 10.3% in July. Meanwhile, the price increase for services slowed slightly to 3.0%, compared to 3.3% in July. In the food, alcohol, and tobacco sector, inflation remained stable at 1.2% (matching the July figure). Industrial goods, excluding energy, rose to 1.2%, compared to 0.9% in July.
When comparing individual Euro countries, Lithuania saw the highest inflation rate among Euro member states in July, hitting 5.8%. In contrast, Estonia reported a much milder increase, with prices climbing by only 1.3% in the preliminary assessment.
