Eurozone Inflation Rate Confirmed at 0.2% YoY in July


Consumer prices in the Eurozone rose 0.2 percent year-on-year in July 2016, following a 0.1 percent gain in the previous month and in line with preliminary estimates. It was the biggest rise since January, mainly boosted by higher prices of food and services, final figures showed.

The largest upward impacts to euro area annual inflation came from restaurants and cafés (+0.11 percentage points, or +1.6 percent year-on-year), vegetables (+0.09 pp, or +5.6 percent) and fruit (+0.08 pp, or +6.4 percent); while fuels for transport (-0.46 pp, or -9.4 percent year-on-year), heating oil (-0.15 pp, or -17.8 percent) and gas (-0.12 pp, or -6.2 percent) had the biggest downward impacts.

Core inflation rate, which excludes prices of energy, food, alcohol and tobacco was confirmed at 0.9 percent, the same as in the previous month.

European Union annual inflation was also 0.2 percent in July 2016, up from 0.1 percent in June. A year earlier the rate was 0.2 percent. 

The highest annual rates were recorded in Belgium (2 percent), Sweden (1.1 percent) and Malta (0.9 percent); while the lowest annual rates were registered in Bulgaria and Croatia (both -1.1 percent) and Slovakia (-0.9 percent). Compared with June 2016, annual inflation rose in twelve Member States, fell in nine and remained stable in seven.

On a monthly basis, consumer prices dropped 0.6 percent in the Eurozone and 0.4 percent in the EU.

Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/18/2016 10:19:15 AM