Euro Area Inflation Rate Below Expectations


Consumer prices in the Euro Area are expected to increase 0.2 percent year-on-year in August of 2016, the same as in the previous month and below market expectations of a 0.3 percent increase. Inflation eased for food, services and industrial goods and energy prices fell at a slower pace.

Food, alcohol and tobacco is expected to have the highest annual rate (1.3 percent compared with 1.4 percent in July), followed by services (1.1 percent compared with 1.2 percent in July) and non-energy industrial goods (0.3 percent compared with 0.4 percent in July). In contrast, energy prices are expected to fall 5.7 percent compared with a 6.7 percent drop in July. 

Core inflation rate which excludes prices of energy, food, alcohol and tobacco eased to 0.8 percent from 0.9 percent in the previous two months. Excluding energy only, the inflation rate was 0.9 percent, also lower than 1 percent in the previous month.

Euro Area Inflation Rate Below Expectations


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
8/31/2016 10:20:07 AM