Euro Area Inflation Rate at 0.8% in January


Euro Area annual inflation was 0.8 percent in January of 2014, unchanged from December’s rate, but revised upwards from a preliminary estimate of 0.7 percent. On a monthly basis, prices dropped to a new record low of -1.1 percent, due to a fall in cost of non-energy industrial goods.

The largest upward impacts to euro area annual inflation came from tobacco (+0.08 percentage points), electricity and milk, cheese ND eggs (+0.05 each), while fuels for transport (-0.19), telecommunications (-0.13) and heating oil (-0.05) had the biggest downward impacts.  

European Union annual inflation was 0.9 percent in January of 2014, down from 1.0 percent in December of 2013. A year earlier the rate was 2.1 percent. Monthly inflation was -0.9 percent. 

Negative annual rates were observed in Cyprus (-1.6 percent), Greece (-1.4 percent) and Bulgaria (-1.3 percent). The highest annual rates were recorded in the United Kingdom and Finland (both 1.9 percent). 

Compared with December of 2013, annual inflation fell in seventeen Member States, remained stable in seven and rose in four. The lowest 12 month average rates up to January 2014 were registered in Greece (-1.0 percent), Latvia (0.0 percent), Bulgaria and Cyprus (both 0.1 percent), and the highest in Estonia (3.1 percent), Romania (2.9 percent) and the United Kingdom (2.5 percent). 

Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
2/24/2014 10:18:02 AM