Brussels: Euro area annual inflation accelerated to 3.3% in August, its highest level since September 2023, when it stood at 4.3%, according to a flash estimate released by Eurostat on Tuesday.

According to Anadolu Agency, the rate rose from 2.9% in July, remaining above the European Central Bank's medium-term target of 2%. Consumer prices increased 0.4% on a monthly basis in August, as reported by the EU's statistical office.

Energy costs were the main driver of the inflation surge, with annual energy inflation climbing to 14.3% from 10.3% in July. Energy prices increased 2.9% month on month, marking a significant impact on the overall inflation rate.

Annual inflation for non-energy industrial goods also saw an increase, rising to 1.2% from 0.9%. However, services inflation eased slightly to 3% from 3.3%, while inflation for food, alcohol, and tobacco remained unchanged at 1.2%.

Core inflation, which excludes energy, food, alcohol, and tobacco, edged down to 2.4% from 2.5%. Meanwhile, inflation excluding only energy remained stable at 2.2%, indicating varying pressures across different sectors.

Among euro-area members, Lithuania recorded the highest annual inflation rate at 5.8%, followed by the Greek Cypriot Administration at 5.2% and Bulgaria at 5.1%. Spain's annual inflation climbed to 4.5%, with Belgium at 4.2%, Italy at 3.2%, Germany at 2.9%, and France at 2.7%.

The lowest annual rates were observed in Estonia at 1.3%, Malta at 1.9%, and Finland at 2.4%.