Eurozone inflation reaches 3.3% - see how France compares with its neighbours
The increase was mainly driven by higher energy prices
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Inflation in the eurozone increased significantly in August reaching 3.3%, up from 2.9% in July, with energy prices the main reason behind the rise.
France, however, remained among the countries with the lowest inflation rates reaching 2.7% in August, up from 2.4% in July, according to Eurostat, the statistics body for the European Union.
Inflation measures how quickly prices are rising. A rate of 3.3% means that, on average, the prices of goods and services covered by the eurozone’s consumer price index were 3.3% higher in August 2026 than in August 2025.
It does not mean that every price rose by 3.3%. Some prices increased by much more, while others rose more slowly or even fell.
France’s August inflation rate puts it below the eurozone average. Among the 21 countries now using the euro, only three recorded inflation rates lower than France: Estonia (1.3%), Malta (1.9%), and Finland (2.4%).
France managed a lower rate than its eurozone neighbours including Germany (2.9%), Italy (3.2%), Spain (4.5%), Belgium (4.2%), and Luxembourg (4.0%).
While August figures for the UK and US have not yet been released, the latest figures for July show inflation rates of 2.9% in the UK and 3.4% in the US, according to the UK’s Office for National Statistics and the US Bureau of Labor Statistics, respectively.
France’s relatively low inflation rate continues a pattern of fluctuation seen earlier in 2026 as well. Annual inflation in France stood at 2.0% in March, before rising to 2.5% in April and 2.8% in May. It then fell to 2.0% in June,before reaching 2.4% in July and 2.7% now in August.
The latest figures also show that inflationary pressures remain uneven across the currency bloc.
The European Central Bank said it aims for 2% inflation over the medium term. This is not a ceiling as both inflation that is too high and inflation that is too low are considered undesirable.
Inflation above 2% can reduce consumers’ purchasing power, while inflation that is too low can signal weak demand and make it harder for the economy to grow. So, the ECB wants inflation to settle around 2% over time, rather than consistently remain above or below.
This means that the eurozone's 3.3% rate remains significantly above its target.
What is driving the increase?
The rise in eurozone inflation was mainly driven by energy prices, which recorded the highest increases of the four main categories of goods and services highlighted in Eurostat’s figures. The four categories were:
Energy, such as electricity, gas and fuel
Food, alcohol and tobacco
Non-energy industrial goods, including clothing, household goods and other manufactured products
Services, such as restaurants, hotels, transport and personal services
Of these, energy recorded by far the biggest price increase in August. Energy prices were 14.3% higher than a year earlier, compared with a 10.3% increase in July.
The other categories saw more modest annual increases. Prices for non-energy industrial goods rose by 1.2%, up from 0.9% in July, while food, alcohol and tobacco prices rose by 1.2%, unchanged from July.
Meanwhile, services inflation slowed to 3.0%, from 3.3% in July.
Eurostat's measure of underlying inflation, which excludes energy, food, alcohol and tobacco also edged down from 2.5% in July to 2.4% in August.
It should be noted though that the August figures are a flash estimate and are subject to revision. Eurostat is set to publish the complete set of consumer price data for August on September 17.
