Euro Area Prices Slowdown Confirmed in December


In December of 2013, Euro Area inflation rate was confirmed at 0.8 percent, down from 0.9 percent in November. The slowdown can be attributed to a change in the method of computing the inflation in Germany. Monthly inflation was 0.3 percent. In the European Union, annual inflation was 1 percent.

The lowest annual rates were observed in Greece (-1.8 percent), Cyprus (-1.3 percent), Bulgaria (-0.9 percent) and Latvia (-0.4 percent), and the highest in Estonia, Austria and the United Kingdom (all 2.0 percent) and Finland (1.9 percent). 

Compared with November 2013, annual inflation fell in nine Member States, remained stable in four and rose in fourteen. The lowest 12-month average rates up to December 2013 were registered in Greece (-0.9 percent), Latvia (0.0 percent), Bulgaria, Cyprus, Portugal and Sweden (all 0.4 percent), and the highest in Estonia and Romania (both 3.2 percent), the Netherlands and the United Kingdom (both 2.6 percent). 

 The largest upward impacts to euro area annual inflation came from electricity (+0.11 percentage points), tobacco (+0.08) and restaurants and cafés (+0.05), while telecommunications (-0.14), fuels for transport (-0.13) and medical and paramedical services (-0.07) had the biggest downward impacts.  

Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
1/16/2014 10:11:29 AM