Eurozone Inflation


Eurozone: Inflation stable in August

September 17, 2014

According to the data released by Eurostat on 17 September, the harmonized index of consumer prices (HICP) rose 0.1% in August over the previous month. The reading contrasted the 0.7% drop recorded in July.

Annual headline inflation was at 0.4%, stable compared to July. The reading was a notch above the 0.3% preliminary estimate released on 29 August. With the August reading, annual inflation has been in what ECB President Mario Draghi called the “danger zone” of below 1.0% for the eleventh consecutive month. Annual average inflation was stable at the 0.7% recorded in July.

The core inflation index, which does not include prices for energy, rose 0.3% over the previous month (July: -0.7% month-on-month). Annual core inflation inched up from 0.8% in July to 0.9% in August.

At a country level, 11 of the 18 Eurozone economies posted annual inflation rates equal to or above the regional average. Austria (1.5%) and Finland (1.2%) recorded the highest annual inflation rates. At the other end of the spectrum, Spain (-0.5%), Estonia, Greece, Italy and Slovakia (-0.2%) experienced year-on-year decreases in harmonized consumer prices. Among the remaining major economies in the Eurozone, inflation was above the regional average in Germany (0.8%) and France (0.5%).

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 0.9% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect inflation to average 1.3%.

Author:, Head of Data Solutions

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Eurozone Inflation Chart

Euro Inflation by country August 2014

Note: Year-on-year var. of harmonized consumer price index (HICP) in %.
Source: Eurostat

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