Euro Area Inflation Rate Confirmed At 3-Month Low



Consumer prices in the Euro Area rose 1.5 percent year-on-year in March of 2017, easing from a 2 percent increase in the previous month and matching preliminary estimates. It is the lowest inflation rate in three months, due to a slowdown in prices of fuels for transport, heating oil and vegetables and a drop in cost of package holidays, final figures showed.

Year-on-year, prices rose less for fuels for transport (13.1 percent from 16.7 percent in February), heating oil (20.8 percent from 30 percent) and vegetables (5.8 percent from 16.2 percent). In addition, prices fell faster for telecommunication (-1.4 percent from -1.1 percent) and declined for package holidays (-3.9 percent). In contrast, prices of garments rebounded (0.4 percent from -0.1 percent).

By country, the highest annual rates were recorded in Latvia (3.3 percent from 3.2 percent), Lithuania (3.2 percent, the same as in February) and Estonia (3 percent from 3.4 percent in February). Inflation eased in Germany (1.5 percent from 2.2 percent), Italy (1.4 percent from 1.6 percent) and Spain (2.1 percent from 3 percent) and was steady in France (1.4 percent). 

Excluding energy, food, alcohol and tobacco, consumer prices increased 0.7 percent, below 0.9 percent in each of the previous three months and the lowest since April of 2016. Excluding energy only, inflation also slowed to 0.9 percent from 1.2 percent in February.

The monthly inflation rate was 0.8 percent, compared to 0.4 percent in February.

Considering the European Union, prices rose 0.6 percent on the month (0.3 percent in February) and 1.6 percent on the year (2 percent in February).

Euro Area Inflation Rate Confirmed At 3-Month Low


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
4/19/2017 11:24:41 AM