Euro Area Inflation Up to 2.6% in August


Euro Area annual inflation was 2.6% in August 2012, up from 2.4% in July. A year earlier the rate was 2.5%.

The main components with the highest annual rates in August 2012 were transport (4.8%), alcohol & tobacco (4.5%) and housing (4.1%), while the lowest annual rates were observed for communications (-3.1%), recreation & culture (0.8%) and education (1.0%). Concerning the detailed sub-indices, fuels for transport (+0.38 percentage points), heating oil (+0.10), gas and electricity (+0.09 each) had the largest upward impacts on the headline rate, while telecommunications (-0.18), garments (-0.08) and rents (-0.07) had the biggest downward impacts. The main components with the highest monthly rates were transport (1.7%), housing (0.5%) and clothing (0.4%), while the lowest monthly rates were observed for food and health (both -0.1%), communications, recreation & culture and education (all 0.0%). In particular, fuels for transport (+0.21 percentage points), heating oil (+0.04) and air transport (+0.03) had the largest upward impacts, while fruit (-0.03), restaurants & cafés, vegetables and cars (-0.02 each) had the biggest downward impacts.

In August 2012, the lowest annual inflation rates were observed in Sweden (0.9%), Greece (1.2%) and Latvia (1.9%), and the highest in Hungary (6.0%), Cyprus (4.5%) and Estonia (4.2%). Compared with July 2012, inflation rose in twenty Member States, remained stable in two and fell in four.


TradingEconomics.com, Eurostat
9/14/2012 10:22:06 AM