Eurozone annual inflation edged slightly higher in August 2025, reaching an estimated 21 percent, up from 20 percent in July, according to data released Tuesday by the EU’s statistical office, Eurostat Month-on-month, prices increased by 02 percent
Underlying inflation, commonly referred to as core inflation – which excludes energy, food, alcohol and tobacco – remained stable at 23 percent in August, mirroring the rate observed in the previous month This core rate is closely monitored by the European Central Bank (ECB) in relation to its target of maintaining price stability at two percent
Breaking down the key components of Eurozone inflation, the category encompassing food, alcohol and tobacco is projected to record the highest annual rate in August at 32 percent, a slight decrease from 33 percent in July This is followed by services at 31 percent (down from 32 percent), non-energy industrial goods at 08 percent (unchanged from July) and energy at -19 percent, an improvement from -24 percent in July
Within the Eurozone, Estonia recorded the highest inflation rate at 62 percent, followed by Croatia (46 percent) and Slovakia (44 percent) Conversely, Cyprus registered a negative rate of -01 percent For Germany, Eurostat calculates an inflation rate of 21 percent, utilizing a different methodology than the German Federal Statistical Office, which reported a rate of 22 percent on Friday