Euro Area Inflation Rate Down to 2.5% in July

Euro Area annual inflation was 2.5% in July 2011, down from 2.7% in June. A year earlier the rate was 1.7%. Monthly inflation was -0.6% in July 2011.

Among EU member states, in July 2011, the lowest annual rates were observed in Ireland (1.0%), Slovenia (1.1%) and Sweden (1.6%), and the highest in Estonia (5.3%), Romania (4.9%) and Lithuania (4.6%). Compared with June 2011, annual inflation fell in sixteen Member States, remained stable in two and rose in nine.

The lowest 12-month averages up to July 2011 were registered in Ireland (0.3%), Sweden (1.6%), the Czech Republic and the Netherlands (1.9% each), and the highest in Romania (7.6%), Estonia (4.9%) and Greece (4.3%).

In the Euro Area, the main components with the highest annual rates in July 2011 were transport (5.5%), housing (5.0%) and alcohol & tobacco (2.9%), while the lowest annual rates were observed for clothing (-2.9%), communications (-1.6%) and recreation & culture (0.4%). Concerning the detailed sub-indices, fuels for transport (+0.51 percentage points), heating oil (+0.19) and electricity (+0.14) had the largest upward impacts on the headline rate, while garments (-0.27), telecommunications (-0.14) and cars (-0.08) had the biggest downward impacts.

The main components with the highest monthly rates were recreation & culture (1.2%), hotels & restaurants (1.1%), housing and transport (both 0.6%), while the lowest were clothing (-14.2%), household equipment (-0.6%) and communications (-0.4%). In particular, package holidays (+0.14 percentage points) and accommodation services (+0.11) had the largest upward impacts, while garments (-0.75) and footwear (-0.18) had the biggest downward impacts., Eurostat
8/17/2011 11:38:59 AM