Euro Area Annual Inflation Stable at 2.7% in June


Euro Area annual inflation was 2.7% in June 2011, unchanged compared to May. A year earlier the rate was 1.5%. Monthly inflation was 0.0% in June 2011.

EU annual inflation was 3.1% in June 2011, down from 3.2% in May. A year earlier the rate was 1.9%. Monthly inflation was -0.1% in June 2011.

In June 2011, the lowest annual rates were observed in Sweden (1.5%), Slovenia (1.6%) and the Czech Republic (1.9%), and the highest in Romania (8.0%), Estonia (4.9%) and Lithuania (4.8%). Compared with May 2011, annual inflation fell in fourteen Member States, remained stable in six and rose in six.

The lowest 12-month averages4 up to June 2011 were registered in Sweden (1.5%), the Czech Republic and the Netherlands (both 1.8%), and the highest in Romania (7.8%), Estonia (4.7%) and Greece (4.6%).

In the Euro Area the main components with the highest annual rates in June 2011 were transport (5.3%), housing (4.8%) and food (2.7%), while the lowest annual rates were observed for communications (-1.2%), recreation & culture (0.4%) and clothing (1.0%). Concerning the detailed sub-indices, fuels for transport (+0.45 percentage points), heating oil (+0.16) and electricity (+0.13) had the largest upward impacts on the headline rate, while telecommunications (-0.13), garments (-0.09) and rents (-0.08) had the biggest downward impacts.

The main components with the highest monthly rates were recreation & culture and hotels & restaurants (both 0.5%) and housing (0.2%), while the lowest were clothing (-1.5%), communications (-0.4%), alcohol & tobacco and transport (both -0.2%). In particular, package holidays (+0.07 percentage points) and accommodation services (+0.03) had the largest upward impacts, while garments (-0.09) and fuels for transport (-0.07) had the biggest downward impacts.


TradingEconomics.com, Eurostat
7/14/2011 11:38:37 AM