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Eurozone Inflation Rate Hits 30-Year High
The Eurozone consumer price inflation is expected to accelerate to 4.9 percent year-on-year in November 2021, from 4.1 percent in the previous month and above market expectations of 4.5 percent, a preliminary estimate showed. It would be the highest rate of inflation since July 1991, and well above the European Central Bank's target of 2.0 percent. Energy cost should rise sharply (27.4 percent vs 23.7 percent in October), followed by solid increases in prices of services (2.7 percent vs 2.1 percent), non-energy industrial goods (2.4 percent vs 2.0 percent), and food, alcohol & tobacco (2.2 percent vs 1.9 percent). Inflation in Europe's largest economies also accelerated to multi-year highs, with sharp rates being recorded in Germany (6.0 percent vs 4.6 percent), Spain (5.6 percent vs 5.4 percent), Italy (4.0 percent vs 3.2 percent) and France (3.4 percent vs 3.2 percent).
Published on 2021-11-30

Euro Area Inflation Rate Confirmed at 2008-High
Annual inflation rate in the Euro Area increased to 4.1% in October of 2021 from 3.4% in September, the highest reading since July of 2008, and in line with preliminary estimates. The bloc continues to battle surging energy costs while supply shortages persist. Biggest increases were seen in cost of energy (23.7%), services (2.1%), non-energy industrial goods (2%) and food, alcohol & tobacco (1.9%). The lowest annual inflation rates were registered in Malta (1.4%), Portugal (1.8%), Finland and Greece (both 2.8%) and the highest in Lithuania (8.2%) and Estonia (6.8%). Inflation in Germany surged to 4.6% and both France and Italy to 3.2%.
Published on 2021-11-17

Eurozone Inflation Hits Fresh 2008-High on Energy Cost
Annual inflation rate in the Euro Area jumped to 4.1% in October of 2021 from 3.4% in September and higher than market forecasts of 3.7%, preliminary estimates showed. It is the highest reading since July of 2008, as the bloc battles surging energy costs while supply shortages persist. Energy is expected to have the highest annual rate in October (23.5%, compared with 17.6% in September), followed by services (2.1% vs 1.7%), non-energy industrial goods (2% vs 2.1%) and food, alcohol & tobacco (2%, stable compared with September). The monthly rate likely increased to 0.8% from 0.5%.
Published on 2021-10-29

Eurozone Inflation Rate Confirmed at 13-Year High
The Eurozone annual inflation rate was confirmed at 3.4 percent in September 2021, the highest rate since before the global financial crisis in September 2008 and well above the European Central Bank's target of 2.0 percent, raising concerns about the policymakers' narrative that recent price spikes are seen as temporary. Energy prices were responsible for almost half of the overall year-on-year inflation reading, rising by 17.6 percent in September after a 15.4 percent advance in August. Additional upward pressure came from services (1.7 percent vs 1.1 percent) and food, alcohol & tobacco (2.0 percent, the same as in August). Meanwhile, cost for non-energy industrial goods rose at a slower pace (2.1 percent vs 2.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.9 percent, the highest rate since December 2008.
Published on 2021-10-20

Eurozone Inflation Rate Jumps to 13-Year High
The Eurozone annual inflation rate is expected to accelerate to 3.4 percent in September 2021, from 3.0 percent in the previous month and slightly above market expectations of 3.3 percent, a preliminary estimate showed. That would match the highest rate of inflation since before the global financial crisis in September 2008, raising concerns about the ECB's narrative that recent price spikes are seen as temporary and the economy requires depressed borrowing costs. Energy cost is seen accounting for much of the increase, rising by 17.4 percent in September after a 15.4 percent advance in August. Additional upward pressure should come from services (1.7 percent vs 1.1 percent) and food (2.1 percent vs 2.0 percent). Cost for non-energy industrial goods likely rose at a slower pace (2.1 percent vs 2.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.9 percent, the highest rate since December 2008.
Published on 2021-10-01

Eurozone Inflation Rate Confirmed at Decade-High
The Eurozone annual inflation rate was confirmed at 3.0 percent in August 2021, highest since November 2011 and well above the European Central Bank's target of 2.0 percent. Still, several policymakers have been dismissing inflation pressures as temporary, while others voiced concerns about a quicker-than-expected increase in consumer prices, mainly reflecting a low base year due to the coronavirus crisis and a global supply squeeze. Energy cost accounted for much of the increase, rising by 15.4 percent in August after a 14.3 percent advance in July. Additional upward pressure should come from services (1.1 percent vs 0.9 percent), non-energy industrial goods (2.6 percent vs 0.7 percent), and food (2.0 percent vs 1.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.6 percent, the highest rate since July 2012.
Published on 2021-09-17

Eurozone Inflation Rate Jumps to Near-Decade High
The Eurozone annual inflation rate is expected to accelerate to 3 percent in August 2021, from 2.2 percent in the previous month and well above market expectations of 2.7 percent, a preliminary estimate showed. That would match the highest rate of inflation since November 2011, which could trigger some vigorous debate at next week's European Central Bank policy meeting. Prices have been rising due to a steady recovery in domestic demand and a low base year caused by the COVID-19 crisis. Energy cost is seen accounting for much of the increase, rising by 15.4 percent in August after a 14.3 percent advance in July. Additional upward pressure should come from services (1.1 percent vs 0.9 percent), non-energy industrial goods (2.7 percent vs 0.7 percent), and food (2.0 percent vs 1.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.6 percent, the highest rate since July 2012 but below the ECB's target of 2 percent.
Published on 2021-08-31

Eurozone Inflation Rate Confirmed Above ECB Target
The consumer price inflation rate in the Euro Area was confirmed at 2.2 percent year-on-year in July 2021, the highest since October 2018 and above the European Central Bank's target of 2.0 percent. The recent price increases reflected a low base year due to the coronavirus crisis, and have been supported by a pick up in demand and activity following the reopening of the bloc's economy. Main upward pressure came from energy (14.3 percent vs 12.6 percent in June), food, alcohol & tobacco (1.6 percent vs 0.5 percent), and services (0.9 percent vs 0.7 percent). Non-energy industrial goods inflation, however, slowed to 0.7 percent from 1.2 percent. Meanwhile, the annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, eased to 0.7 percent in July, from 0.9 percent in June. On a monthly basis, consumer prices edged down 0.1 percent.
Published on 2021-08-18

Euro Area Inflation Rate Rises to 2.2%
Annual inflation rate in the Euro Area increased to 2.2% in July of 2021 from 1.9% in June, above market forecasts of 2%. It is the highest reading since October of 2018, flash estimates showed. Energy is expected to have the highest annual rate in July (14.1%, compared with 12.6% in June), followed by food, alcohol & tobacco (1.6%, compared with 0.5% in June); services (0.9%, compared with 0.7% in June); and non-energy industrial goods (0.7%, compared with 1.2% in June). The monthly rate was -0.1%. Annual core inflation which excludes energy, food, alcohol and tobacco edged down to 0.7% from 0.9%. Excluding energy only, inflation was 0.9%.
Published on 2021-07-30

Euro Area Inflation Rate Confirmed at 1.9%
Annual inflation rate in the Euro Area was confirmed at 1.9% in June of 2021, in line with the preliminary estimate, and slowing from a 2-1/2-year high of 2% in May. Biggest contribution came from energy (12.6% vs 13.1%), followed by non-energy industrial goods (1.2% vs 0.7%), services (0.7% vs 1.1%) and food, alcohol & tobacco (0.5%, the same as in May). A low base effect from last year is also weighing. In June 2020, inflation rate in the Eurozone was 0.3%. The ECB expects inflation to increase later in the year but the rise should be temporary.
Published on 2021-07-16

Euro Area Inflation Rate Slows to 1.9%
Annual inflation rate in the Euro Area eased to 1.9% in June of 2021 from a 2-1/2-year high of 2% in May, in line with market forecasts, preliminary data showed. Prices likely slowed for energy (12.5% vs 13.1% in May) and services (0.7% vs 1.1%) but inflation accelerated for non-energy industrial goods (1.2% vs 0.7%) and food, alcohol & tobacco (0.6% vs 0.5%). The monthly rate was steady at 0.3%. Inflation in June fell towards the ECB's target of below but close to 2% although it is likely to peak above 2.5% towards the end of the year.
Published on 2021-06-30

Eurozone May Inflation Rate Confirmed at 2-1/2-Year High
The consumer price inflation rate in the Euro Area was confirmed at 2.0 percent year-on-year in May 2021, the highest since October 2018, due to the low base year and reflecting a sharp rebound in demand following the re-opening of the economy. Upward pressure came from energy (13.1 percent vs 10.4 percent in April), services (1.1 percent vs 0.9 percent), and non-energy industrial goods (0.7 percent vs 0.4 percent). On the other hand, cost for food, alcohol & tobacco rose at a slightly slower pace (0.5 percent vs 0.6 percent). Meanwhile, the annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco picked up to 1.0 percent, from 0.7 percent in April. On a monthly basis, consumer prices advanced 0.3 percent.
Published on 2021-06-17

Euro Area Inflation Rate Above Forecasts
The annual inflation rate in the Eurozone accelerated to 2% in May of 2021 from 1.6% in April and above market forecasts of 1.9%, preliminary estimates showed. It is the highest reading since October of 2018 with the cost of energy expected to rise the most (13.1% vs 10.4% in April) mostly due to the base effect as in May last year the region was in a full lockdown. Prices are also set to increase for services (1.1% vs 0.9%), non-energy industrial goods (0.7% vs 0.4%) and food, alcohol & tobacco (0.6%, stable compared with April). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco is expected to edge up to 0.9% from 0.7%. The ECB has said already it is expecting a spike in inflation on the back of base effects and temporary factors, warning that it may even exceed the central bank's target by the end of the year.
Published on 2021-06-01

Eurozone Inflation Rate Confirmed at 2-Year High
The consumer price inflation rate in the Euro Area was confirmed at 1.6 percent year-on-year in April of 2021, the highest since April of 2019, driven mainly by higher cost for energy (10.4 percent vs 4.3 percent in March) and non-energy industrial goods (0.4 percent vs 0.3 percent). On the other hand, prices rose at a softer pace for food, alcohol & tobacco (0.6 percent vs 1.1 percent) and services (0.9 percent vs 1.3 percent). The ECB has said already it is expecting a spike in headline inflation on the back of base effects and temporary factors, warning that it may even exceed the central bank's target by the end of the year. Meanwhile, the annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco eased to 0.7 percent from 0.9 percent in March. On a monthly basis, consumer prices went up 0.6 percent in April.
Published on 2021-05-19

Eurozone Inflation Rate at 2-Year High of 1.6%
The Eurozone consumer price inflation is expected to accelerate to 1.6 percent year-on-year in April of 2021, the highest level since April of 2019 and in line with market expectations, a preliminary estimate showed. Energy prices are set to rise by 10.3 percent (4.3 percent in March) while non-energy industrial goods cost is seen up 0.5 percent (0.3 percent in March). Meantime, slower increases are expected for services (0.9 percent vs 1.3 percent) and food, alcohol & tobacco (0.7 percent vs 1.1 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is expected to slow to 0.8 percent in April from 0.9 percent.
Published on 2021-04-30

Eurozone Inflation Rate Confirmed at 14-Month High
The consumer price inflation rate in the Euro Area was confirmed at 1.3 percent year-on-year in March 2021, the highest since January 2020, driven mainly by higher cost for services (1.3 percent vs 1.2 percent in February) and energy (4.3 percent vs -1.7 percent). On the other hand, prices rose at a softer pace for non-energy industrial goods (0.3 percent vs 1.0 percent) and food, alcohol & tobacco (1.1 percent vs 1.3 percent). The ECB has said already it is expecting a spike in headline inflation on the back of base effects and temporary factors, warning that it may even exceed the central bank's target by the end of the year. Meanwhile, the annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco eased to 0.9 percent from 1.1 percent in February. On a monthly basis, consumer prices climbed 0.9 percent in March.
Published on 2021-04-16

Eurozone Inflation Rate at Over 1-Year High
The Eurozone consumer price inflation is expected to accelerate to 1.3 percent year-on-year in March 2021, the highest level since January 2020 and in line with market expectations, a preliminary estimate showed. Energy prices should rebound 4.3 percent, compared with a 1.7 percent drop in February, and services inflation is seen picking up to 1.3 percent from 1.2 percent. Meanwhile, cost will probably rise at a slower pace for both non-energy industrial goods (0.3 percent vs 1.0 percent) and food, alcohol & tobacco (1.1 percent vs 1.3 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is expected to slow to 0.9 percent in March, below market forecasts of 1.1 percent.
Published on 2021-03-31

Eurozone Inflation Rate Confirmed at Near 1-Year High
The consumer price inflation rate in the Euro Area was confirmed at 0.9 percent year-on-year in February 2021, unchanged from the previous month's 11-month high, boosted by increases in cost for services (1.2 percent vs 1.4 percent in January), non-energy industrial goods (1.0 percent vs 1.5 percent), and food, alcohol & tobacco (1.3 percent vs 1.5 percent). At the same time, energy prices fell 1.7 percent, much slower than a 4.2 percent slump in the previous month. Meanwhile, the annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, slowed to 1.1 percent in February, from 1.4 percent in January. On a monthly basis, consumer prices rose 0.2 percent, while the core index edged up 0.1 percent.
Published on 2021-03-17

Eurozone Inflation Rate Nears 1-Year High
The Eurozone consumer price inflation is expected to hold steady at 0.9 percent year-on-year in February 2021, unchanged from the previous month's 11-month high and in line with market expectations, a preliminary estimate showed. Energy prices should decline at a softer pace (-1.7 percent vs -4.2 percent in January), while a slowdown in inflation was probably recorded for services (1.2 percent vs 1.4 percent), non-energy industrial goods (1.0 percent vs 1.5 percent) and food, alcohol & tobacco (1.4 percent vs 1.5 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is expected to slow to 1.1 percent in February, from 1.4 percent in January.
Published on 2021-03-02

Eurozone Inflation Rate Confirmed at 11-Month High
The consumer price inflation rate in the Euro Area was confirmed at 0.9 percent year-on-year in January 2021, the highest since February last year, boosted mainly by a jump in cost for services (1.4 percent vs 0.7 percent in December) and non-energy industrial goods (1.5 percent vs -0.5 percent). Food, alcohol & tobacco inflation also picked up (1.5 percent vs 1.3 percent), while energy prices fell at a slower pace (-4.2 percent vs -6.9 percent).
Published on 2021-02-23