BRUSSELS, October 18: Annual inflation in the euro area rose to 2.2 percent in September 2025, up from 2.0 percent in August, according to data released Friday by Eurostat. The increase marks the first acceleration in consumer price growth since April and pushes inflation slightly above the European Central Bank’s medium-term target of 2 percent. The largest contributor to the year-on-year inflation rate was the services sector, which added 1.49 percentage points to the overall figure.
Euro area inflation rises to 2.2 percent driven by services and food prices.
Prices for food, alcohol and tobacco added 0.58 points, while non-energy industrial goods contributed 0.20 points. The energy component posted a slight negative impact of minus 0.03 points. The Harmonised Index of Consumer Prices (HICP) showed that services saw a 3.2 percent increase in prices compared to the same month last year. Food, alcohol and tobacco rose 3.0 percent, slightly lower than the 3.2 percent recorded in August.
Non-energy industrial goods remained steady with a 0.8 percent annual increase. Energy prices declined 0.4 percent, following a sharper drop of 3.3 percent in August. Core inflation, which excludes volatile components such as energy and unprocessed food, was unchanged at 2.5 percent in September. Inflation excluding only energy stood at 2.5 percent, also unchanged from August. On a monthly basis, consumer prices in the euro area rose 0.1 percent.
Euro area inflation climbs above ECB target in September
Inflation rates varied significantly across the 20 euro area countries. The highest annual rates were recorded in Romania (8.6 percent), Estonia (5.3 percent), and both Croatia and Slovakia (4.6 percent). The lowest rates were observed in Cyprus (0.0 percent), France (1.1 percent), and Greece and Italy (1.8 percent). Compared to August, inflation increased in 15 member states, remained stable in four, and declined in eight.
In Germany, the euro area’s largest economy, final data confirmed an annual inflation rate of 2.4 percent for September, the highest since February. The rise was attributed to smaller energy price declines and persistent growth in core components. For the broader European Union, which includes seven additional countries beyond the euro area, the annual inflation rate was 2.6 percent in September, up from 2.4 percent in August.
Next inflation estimate expected end of October
In September 2024, EU inflation was 2.1 percent. The latest figures are based on Eurostat’s final inflation report for September, confirming earlier flash estimates released earlier in the month. The HICP is used by the European Central Bank as its primary inflation gauge. The data add to a wider picture of persistent inflationary pressures within the euro area following a period of relative stability.
From June to August, the annual euro area inflation rate had hovered at or near 2.0 percent, supported by falling energy prices and easing supply-side constraints. Price developments in key sectors, especially services and food, continue to influence the overall inflation trajectory. Wage trends, input costs, and consumer demand across euro area economies have also played a role in shaping monthly and annual inflation outcomes. Eurostat will release the next preliminary inflation estimate for October on October 31. – By EuroWire News Desk.