Euro Area Inflation Rate Below Expectations

The annual inflation rate in the Eurozone was 0.1 percent in August of 2015, slowing from 0.2 percent in the previous two months and the lowest since April. Final figures came below initial estimates of 0.2 percent, due to fall in prices of fuels, heating oil, milk, cheese and eggs.

The largest upward impacts came from restaurants & cafés (up 1.5 percent), vegetables (up 6.6 percent) and tobacco (up 3.5 percent), while fuels for transport (down 11 percent), heating oil (down 26.8 percent) and milk, cheese & eggs (down 2.7 percent) had the biggest downward impacts.

Core inflation rate which excludes prices of energy, food, alcohol and tobacco slowed to 0.9 percent from 1 percent in July. Excluding energy, consumer prices rose 1 percent, slightly higher than 0.9 percent in the previous month.

On a monthly basis, consumer prices were flat, after falling 0.6 percent in July.

European Union annual inflation was 0.0 percent in August, down from 0.2 percent in July. Negative annual rates were observed in eleven Member States. The lowest annual rates were registered in Cyprus (-1.9 percent), Romania (-1.7 percent) and Lithuania (-1.0 percent). The highest annual rates were recorded in Malta (1.4 percent), Austria (0.9 percent) and Belgium (0.8 percent). Compared with July 2015, annual inflation fell in fourteen Member States, remained stable in four and rose in ten.

Euro Area Inflation Rate Below Expectations

Eurostat | Joana Taborda |
9/16/2015 10:15:30 AM