Euro Area Annual Inflation Down to 2.6%


Euro area annual inflation was 2.6% in January 2012, down from 2.7% in December 2011. A year earlier the rate was 2.3%. Monthly inflation was -0.8% in January 2012.

In January 2012, the lowest annual rates were observed in Sweden (0.7%), Ireland (1.3%) and Malta (1.5%), and the highest in Hungary (5.6%), Estonia (4.7%), Poland and Slovakia (both 4.1%). Compared with December 2011, annual inflation fell in sixteen Member States, remained stable in two and rose in nine.

The lowest 12-month averages up to January 2012 were registered in Ireland and Sweden (both 1.3%) and Slovenia (2.1%), and the highest in Romania (5.5%), Estonia (5.0%) and the United Kingdom (4.4%).

Euro area

The main components with the highest annual rates in January 2012 were housing (4.5%), transport (4.4%) and alcohol & tobacco (3.8%), while the lowest annual rates were observed for communications (-2.4%), recreation & culture (0.7%) and clothing (0.9%). Concerning the detailed sub-indices, fuels for transport (+0.33 percentage points), heating oil and gas (+0.14 each) had the largest upward impacts on the headline rate, while telecommunications (-0.16), garments and vegetables (-0.11 each) had the biggest downward impacts.

The main components with the highest monthly rates were health and transport (1.0% each) and housing (0.9%), while the lowest monthly rates were observed for clothing (-14.1%), recreation & culture (-2.0%) and household equipment (-0.7%). In particular, fuels for transport (+0.22 percentage points), restaurants & cafés (+0.09) had the largest upward impacts, while garments (-0.77), package holidays (-0.18) and footwear (-0.16) had the biggest downward impacts.


TradingEconomics.com, Eurostat
2/29/2012 12:27:14 PM