Euro Area Inflation up to -0.2%


Euro area annual inflation was -0.2% in August 2009, up from -0.7% in July. A year earlier the rate was 3.8%. Monthly inflation was 0.3% in August 2009.

European Union annual inflation was 0.6% in August 2009, up from 0.2% in July. A year earlier the rate was 4.3%. Monthly inflation was 0.3% in August 2009.

In August 2009, the lowest annual rates were observed in Ireland (-2.4%), Portugal (-1.2%) and Cyprus (-0.9%), and the highest in Hungary (5.0%), Romania (4.9%) and Poland (4.3%). Compared with July 2009, annual inflation fell in eight Member States, remained stable in two and rose in seventeen.

The lowest 12-month averages up to August 2009 were registered in Ireland (0.0%), Portugal (0.1%) and Luxembourg (0.6%), and the highest in Latvia (7.7%), Lithuania (6.9%) and Romania (6.4%).

The main components with the highest annual rates in August 2009 were alcohol & tobacco (4.5%), miscellaneous goods & services (2.2%) and household equipment (1.7%), while the lowest annual rates were observed for transport (-3.2%), housing (-1.3%) and food (-1.2%). Concerning the detailed sub-indices, restaurants & cafés (+0.15 percentage points), tobacco (+0.14) and rents (+0.12) had the largest upward impacts on the headline rate, while fuels for transport (-0.67), heating oil (-0.35) and gas (-0.16) had the biggest downward impacts.

The main components with the highest monthly rates were clothing (2.3%), transport (1.1%), housing, household equipment and hotels & restaurants (0.3% each), while the lowest were food (-0.5%), education (-0.4%), health and communications (-0.1% each). In particular, fuels for transport (+0.13 percentage points), garments (+0.12) and heating oil (+0.04) had the largest upward impacts, while vegetables (-0.06) and fruit (-0.05) had the biggest downward impacts.


TradingEconomics.com, Bloomberg
9/16/2009 10:06:19 AM