Euro Area Inflation Rate Steady at 0.2% in July


Consumer prices in the Eurozone rose 0.2 percent year-on-year in July of 2015, from a 0.2 percent increase in June but in line with flash estimates. The slowdown in cost of fuel and heating oil was enough to offset positive impact that came from prices of restaurants and cafes and tobacco.

Year-on-year, the largest upward pressure came from restaurants & cafés (+0.09 p.p.), tobacco (+0.08 p.p.) and rents (+0.06 p.p.); while fuels for transport (-0.43 p.p.), heating oil (-0.20 p.p.) and milk, cheese & eggs (-0.06 p.p.) had the biggest downward impacts.

Core inflation rate which excludes prices of energy, food, alcohol and tobacco advanced to 1 percent from 0.8 percent in June. Excluding energy, consumer prices rose 0.9 percent, the same pace as in the previous month.

On a monthly basis, consumer prices dropped 0.6 percent, after showing no growth in June and in line with market expectations.

In the European Union, annual inflation was 0.1 percent in July. The lowest annual rates were registered in Cyprus (-2.4 percent), Romania (-1.4 percent) and Greece (-1.3 percent). The highest annual rates were recorded in Malta (1.2 percent), Austria (1.1 percent) and Belgium (0.9 percent). Compared with June 2015, consumer prices fell 0.5 percent.

Eurostat | joana.ferreira@tradingeconomics.com
8/14/2015 10:18:31 AM