Eurozone Inflation Rate at Near 1-1/2-Year Low


The annual inflation rate in the Euro Area is expected to fall to 1.1 percent in July of 2019 from 1.3 percent in the previous month and in line with market expectations, a preliminary estimate showed. It is the lowest inflation rate since February last year, mainly due to a slowdown in cost of energy and services.

Year-on-year, prices should rise at a softer pace for energy (0.6 percent from 1.7 percent in June) and services (1.2 percent from 1.6 percent). Meantime, cost of food, alcohol and tobacco is expected to advance to 2 percent from 1.6 percent in June, boosted by processed food, alcohol and tobacco (2 percent from 1.9 percent) and unprocessed food (1.7 percent from 0.7 percent). Also, prices of non-energy industrial goods are seen rising further (0.4 percent from 0.3 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 likely to slow to 0.9 percent in July from 1.1 percent in the prior month and below market expectations of 1 percent.

Eurozone Inflation Rate at Near 1-1/2-Year Low


Eurostat | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/31/2019 9:13:19 AM