Eurozone August Inflation Rate Stronger than Expected


Consumer prices in the Euro Area are expected to increase by 1.5 percent year-on-year in August 2017, beating market expectations of 1.4 percent and following a 1.3 percent gain in the previous month, the flash estimate showed. It was the highest inflation rate since April, mainly boosted by rising energy prices.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in August (4 percent, compared with 2.2 percent in July), followed by services (1.6 percent, stable compared with July), food, alcohol & tobacco (1.4 percent, stable compared with July) and non-energy industrial goods (0.5 percent, stable compared with July).

Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, was unchanged at 1.2 percent.

Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/31/2017 9:07:43 AM