Eurozone Inflation July 2017


Eurozone: Inflation stable in July

August 17, 2017

Complete data released by Eurostat on 17 August confirmed that harmonized inflation was 1.3% in July, mirroring June’s print. The result was in line with the preliminary estimate and is below the European Central Bank’s target of close to, but below 2.0%. According to Eurostat, prices for food, alcohol and tobacco grew at the same pace as the previous month in July, while prices for energy rose at a slightly faster pace. Annual average inflation inched up from 1.1% in June to 1.2%, a multi-year high.

Core inflation came in at 1.3% in July, above June’s 1.2%. Meanwhile, harmonized consumer prices fell 0.5% on a monthly basis, after recording zero growth in June.

Looking at the countries in the common-currency bloc, the lowest price pressures were recorded in Ireland (-0.2% year-on-year) and Cyprus (-0.1% year-on-year). On the other side of the spectrum, the Baltics saw the highest inflation with Lithuania leading the pack (4.1%). Regarding the largest economies in the Eurozone, Spain saw the highest inflation (1.7%), followed by Germany (1.5%). Meanwhile, inflation was below the region’s average in France (0.8%) and Italy (1.2%).

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.6% in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists expect inflation to average 1.5%.

Author: Angela Bouzanis, Senior Economist

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Eurozone Inflation Chart

Euro Inflation July 2017 1

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

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