Euro Area Inflation Down to 2.5 Percent in October


Euro area annual inflation was 2.5 percent in October 2012, down from 2.6 percent in September. A year earlier the rate was 3.0 percent. Monthly inflation was 0.2 percent in October 2012.

The main components with the highest annual rates in  October 2012  were transport (4.1 percent), alcohol & tobacco  and housing (both 4.0 percent), while the lowest annual rates were observed for communications (-3.5 percent), recreation & culture (1.0 percent), clothing and household equipment (both  1.2 percent).  Concerning the detailed sub-indices,  fuels for transport (+0.32 percentage points), heating oil (+0.10) and electricity (+0.09)   had the largest upward impacts  on the headline rate, while  telecommunications (-0.19), cars (-0.08) and garments (-0.07)  had the biggest downward impacts.

The main components  with the highest monthly rates  were  clothing and education (both 2.2 percent) followed by  alcohol & tobacco (0.9 percent),  while  the  lowest  monthly rates  were  observed for  transport (-0.6 percent), communications (-0.4 percent), recreation & culture and hotels & restaurants (both  -0.3 percent).  In particular,  garments (+0.10 percentage points), footwear, vegetables and tobacco (+0.03 each)  had the largest upward impacts,  while  fuels for transport (-0.13), accommodation services (-0.05) and package holidays (-0.04) had the biggest downward impacts.

In October 2012, the lowest annual rates were observed in Greece (0.9 percent), Sweden (1.2 percent) and Latvia (1.6 percent), and the highest  in  Hungary  (6.0 percent),  Romania  (5.0 percent) and  Estonia  (4.2 percent).  Compared with  September  2012,  annual inflation fell in thirteen Member States, remained stable in four and rose in ten.


TradingEconomics.com, Eurostat
11/15/2012 10:10:59 AM