Euro Area Annual Inflation Stable at 2.5%

Euro area annual inflation was 2.5% in August 2011, unchanged compared with July. A year earlier the rate was 1.6%. Monthly inflation was 0.2% in August 2011.

In August 2011, the lowest annual rates were observed in Ireland (1.0%), Slovenia (1.2%) and Greece (1.4%), and the highest in Estonia (5.6%), Latvia (4.6%) and the United Kingdom (4.5%). Compared with July 2011, annual inflation fell in thirteen Member States, remained stable in two and rose in twelve.

The lowest 12-month averages up to August 2011 were registered in Ireland (0.4%), Sweden (1.6%), the Czech Republic and Slovenia (both 1.9%), and the highest in Romania (7.3%) and Estonia (5.1%).

The main components with the highest annual rates in the Euro Area in August 2011 were transport (5.6%), housing (4.9%) and alcohol & tobacco (3.1%), while the lowest annual rates were observed for clothing (-2.8%), communications (-1.8%) and recreation & culture (0.4%). Concerning the detailed sub-indices, fuels for transport (+0.52 percentage points), heating oil (+0.18) and electricity (+0.14) had the largest upward impacts on the headline rate, while garments (-0.27) and telecommunications (-0.14) had the biggest downward impacts.

The main components with the highest monthly rates were clothing (1.8%) and health (0.5%), while the lowest were food and education (both -0.2%). In particular, garments (+0.09 percentage points) had the largest upward impact, while vegetables (-0.05) and fruit (-0.04) had the biggest downward impacts., Eurostat
9/15/2011 11:42:34 AM