Inflation in the eurozone accelerated to 2.1% in August

Energy prices fell by 1.9% over the month

Inflation in the eurozone rose by 2.1% in August 2025 compared to the same month in 2024. Thus, the indicator accelerated its growth rate compared to 2% in July. This is evidenced by preliminary data from Eurostat.

Analysts had expected the pace of price growth in August to remain at the previous month’s level, according to Trading Economics.

Core inflation, which excludes energy and food costs, rose 2.3% in August, the same as in July. Energy prices fell 1.9% (-2.4% in July).

During the month, the member countries with the highest annual inflation rates were Estonia (+6.2%), Croatia (+4.6%), Slovakia (+4.4%), Austria and Latvia (both +4.1%). The lowest rates were recorded in France (+0.8%), Italy (+1.7%), and Ireland (+1.8%). In Germany, consumer prices rose by 2.1%.

As reported by GMK Center, the European Central Bank continues to pursue a policy of monetary stimulus. In June, the ECB lowered interest rates for the eighth time this year. From June 11, the deposit rate will be 2%, the main refinancing rate will be 2.15%, and the marginal lending rate will be 2.4%.

According to Eurostat estimates, the EU’s GDP grew by 1% in 2024 compared to 2023. In the eurozone, this figure increased by 0.9% year-on-year. In the fourth quarter, seasonally adjusted EU GDP grew by 0.4% compared to the previous quarter and by 1.4% compared to the same period in 2023. In the eurozone, the indicator grew by 0.2% quarter-on-quarter and by 1.2% year-on-year.