FX.co ★ Euro Zone Core Inflation Ticks Higher in August, Raising Questions Over ECB Path

Euro zone consumer prices excluding tobacco accelerated in August 2026, underscoring persistent underlying inflationary pressures in the currency bloc. According to data updated on 17 September 2026, the CPI ex Tobacco rose 3.2% year-over-year in August, up from 2.9% in July.

The figures, measured on a year-over-year basis, compare each month with the same month a year earlier. July’s 2.9% reading reflected the annual change versus July a year ago, while August’s 3.2% print shows the change from August a year earlier. The uptick suggests that core price dynamics remain firm, potentially complicating the policy calculus for euro zone authorities aiming to steer inflation closer to target without derailing growth.

The move from 2.9% to 3.2% in CPI ex Tobacco may prompt financial markets and policymakers to reassess expectations about the pace and timing of future policy adjustments, as investors monitor whether this marks a temporary blip or the beginning of a renewed inflationary trend in the euro area economy.