Eurozone: Inflation steady in August at over two-year low
September 18, 2019
Complete data confirmed harmonized inflation was unchanged at July’s 1.0% in August, matching the preliminary estimate of and marking the lowest reading since November 2016. Inflation sits sizably below the European Central Bank’s target rate of near, but under, 2.0%. The reading was chiefly due to a drop in energy prices which was balanced out by higher price pressures for food, alcohol and tobacco.
Annual average harmonized inflation inched down to 1.5% in August, from July’s 1.6%. Core inflation, meanwhile, was unchanged at 1.1%. On a monthly basis, harmonized consumer prices rose 0.1% in August, contrasting July’s 0.5% drop.
Among the countries in the common-currency bloc, Portugal experienced the weakest price pressures with harmonized prices falling 0.1% on an annual basis. On the flipside, the Netherlands and Latvia recorded the highest inflation (3.1%). Regarding the largest economies in the Eurozone, inflation fell in Germany and Spain, but rose in Italy and the Netherlands. Price pressures were unchanged in France.