Euro Area Annual Inflation Down to 2.4% in May


Euro area annual inflation was 2.4% in May 2012, down from 2.6% in April. A year earlier the rate was 2.7%.

In May 2012, the lowest annual rates were observed in Greece and Sweden (both 0.9%) and Bulgaria (1.8%), and the highest in Hungary (5.4%), Estonia (4.1%), Cyprus and Malta (both 3.7%).

The main components with the highest annual rates in May 2012 were alcohol & tobacco (4.7%), housing (4.0%) and transport (3.7%), while the lowest annual rates were observed for communications (-3.3%), education (0.7%) and recreation & culture (1.3%). Concerning the detailed sub-indices, fuels for transport (+0.22 percentage points), gas (+0.12), electricity and tobacco (+0.09 each) had the largest upward impacts on the headline rate, while telecommunications (-0.19), audio-visual equipment, cars and rents (-0.06 each) had the biggest downward impacts.

The main components with the highest monthly rates were alcohol & tobacco (0.4%), household equipment and hotels & restaurants (both 0.2%), while the lowest monthly rates were observed for transport (-1.0%) and communications (-0.6%). In particular, fruit (+0.03 percentage points), restaurants & cafés and electricity (+0.02 each) had the largest upward impacts, while fuels for transport (-0.15), air transport, heating oil, vegetables and package holidays (-0.02 each) had the biggest downward impacts.


TradingEconomics.com, Eurostat
6/17/2012 11:42:47 AM