Euro Area Inflation Down to 3.8%


Euro area annual inflation was 3.8% in August 20082, down from 4.0% in July. A year earlier the rate was 1.7%.

EU annual inflation was 4.2% in August 2008, down from 4.4% in July. A year earlier the rate was 1.9%.

In August 2008, the lowest annual rates were observed in the Netherlands (3.0%), Portugal (3.1%) and Ireland (3.2%), and the highest in Latvia (15.6%), Lithuania (12.2%) and Bulgaria (11.8%). Compared with July 2008, annual inflation fell in nineteen Member States, remained stable in three and rose in four.
The lowest 12-month averages up to August 2008 were registered in the Netherlands (2.0%), Portugal (2.8%) and Sweden (3.0%), and the highest in Latvia (15.5%), Bulgaria (12.5%) and Estonia (10.5%).

The main components with the highest annual rates in August 2008 were housing and transport (both 6.3%) and food (6.2%), while the lowest annual rates were observed for communications (-2.5%), clothing (0.4%) and recreation & culture (0.5%). Concerning the detailed sub-indices, fuels for transport (+0.52 percentage points), heating oil (+0.29) and milk, cheese & eggs (+0.19) had the largest upward impacts on the headline rate, while telecommunications (-0.20), garments (-0.18) and cars (-0.17) had the biggest downward impacts.


TradingEconomics.com, Eurostat
9/16/2008 5:06:44 AM