Euro area annual inflation was 1.7% in August 2007, down from 1.8% in July. A year earlier the rate was 2.3%. Monthly inflation was 0.1% in August 2007.
Inflation in the EU Member States
In August 2007, the lowest annual rates were observed in Malta (0.6%), Denmark (0.9%) and the Netherlands (1.1%), and the highest rates in Latvia (10.2%), Bulgaria (9.3%) and Hungary (7.1%). Compared with July 2007, annual inflation rose in seven Member States, remained stable in four and fell in fifteen.
The lowest 12-month averages4 up to August 2007 were in Malta (0.5%), France and Finland (both 1.3%); the highest were in Latvia and Hungary (both 7.7%) and Bulgaria (5.7%).
The main components with the highest annual rates in August 2007 were education (9.3%), alcohol & tobacco (3.8%) and hotels & restaurants (3.4%), while the lowest annual rates were observed for communications (-1.1%), recreation & culture (0.0%) and clothing (0.6%). Concerning the detailed sub-indices, restaurants & cafés (+0.12 percentage points), tobacco (+0.09) and education (+0.07) had the largest upward impact on the headline rate, while fuels for transport (-0.19), telecommunications (-0.09) and heating oil (-0.08) had the biggest downward impacts.
The main components with the highest monthly rates were clothing (0.7%), alcohol & tobacco (0.5%) and hotels & restaurants (0.4%), and the lowest were transport (-0.5%), health (-0.4%) and recreation & culture (-0.1%). In particular, garments (+0.04 percentage points), accommodation services, tobacco and milk, cheese & eggs (+0.02 each) had the largest upward impact, while fuels for transport (-0.10), vegetables (-0.03) and fruit (-0.02) had the biggest downward impacts.