Euro area HICP inflation rose to 2.1% YoY (vs 2.0% YoY expected) in August 2025, up from 2.0% in July, while the monthly rate was +0.2% MoM, pointing to a slight pickup in price pressures.

• Core inflation (ex energy, food, alcohol & tobacco) was stable at 2.3% YoY, after a 0.3% MoM increase, though forecasts expected a slight slowdown to 2.2% YoY.

• Food, alcohol & tobacco inflation eased slightly to 3.2% YoY (from 3.3%) with no change on the month. Unprocessed food prices fell -0.4% MoM, offsetting a 0.2% MoM rise in processed food prices.

• Energy prices fell -0.6% MoM and -1.9% YoY (up from -2.4% YoY). This is the highest annual change since March.

• Services inflation moderated to 3.1% YoY (from 3.2%) after a +0.3% MoM rise, remaining the strongest driver of underlying inflation. However, the annual increase is at its lowest since March 2022.

• Non-energy industrial goods prices increased 0.8% YoY for the second straight month and were up +0.3% MoM.