Euro Area Annual Inflation Stable at 2.4%

Euro area annual inflation was 2.4% in July 2012, stable compared to June. A year earlier the rate was 2.6%.

The main components with the highest annual rates in July 2012 were alcohol & tobacco (4.7%), housing (3.8%) and transport (3.2%). The lowest annual rates were observed for communications (-3.1%), education (0.7%) and recreation & culture (1.0%). Fuels for transport (+0.13 percentage points), electricity and gas (+0.10 each) had the largest upward impacts on the headline rate, while telecommunications (-0.18) and cars (-0.06) had the biggest downward impacts. The main components with the highest monthly rates were recreation & culture (1.6%), hotels & restaurants (1.3%) and health (0.9%), while the lowest monthly rates were observed for clothing (-13.4%), communications (-0.8%) and household equipment (-0.7%) In particular, package holidays (+0.18 percentage points), accommodation services (+0.12) and air transport (+0.08) had the largest upward impacts, while garments (-0.74), footwear (-0.16) and fruit (-0.05) had the biggest downward impacts., Eurostat
8/17/2012 2:51:30 PM