Latest reading: Consumer prices increased 2.9% on a year-on-year basis in August, following a 3.1% increase in the prior month....
Inflation in Euro Area
The Euro area faced generally low inflation rates over the last decade, often below 2%, reflecting the region's slow economic growth and low inflation expectations. That said, the picture has changed notably since the pandemic: Inflation has exceeded the European Central Bank's 2% from 2021 through 2024, due to the initial rebound in economic activity, global supply pressures, a rise in protectionism and the reduction of Russian gas flows to the bloc.
In the year 2024, the inflation in Euro Area was 2.36%, compared to 0.43% in 2014 and 5.42% in 2023. It averaged 2.21% over the last decade. For more inflation information, visit our dedicated page.
Euro Area Inflation Chart
Note: This chart displays Inflation (HICP, ann. var. %, aop) for Euro Area from 2014 to 2024.
Source: Macrobond.
Euro Area Inflation Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Inflation (HICP, ann. var. %, aop) | 0.3 | 2.6 | 8.4 | 5.4 | 2.4 |
| Inflation (HICP, ann. var. %, eop) | -0.3 | 5.0 | 9.2 | 2.9 | 2.4 |
| Inflation (PPI, ann. var. %, aop) | -2.6 | 12.2 | 32.7 | -2.1 | -4.2 |
Harmonized inflation increases in August
Latest reading: Harmonized inflation edged up to 2.1% in August, above July’s 2.0%. Market expectations were for inflation to remain at the ECB’s 2.0% target for the third consecutive month. Looking at the details of the release, energy prices dropped at a less pronounced pace. That said, services price growth moderated. The trend was unchanged, with annual average harmonized inflation coming in at July's 2.1% in August. Meanwhile, core inflation was stable, coming in at July's 2.3% in August. Lastly, harmonized consumer prices rose 0.15% from the previous month in August, accelerating from the 0.02% rise recorded in July.
Outlook: Our panelists expect inflation to remain around target throughout the remainder of the year, tamed by muted oil prices.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects European inflation projections for the next ten years from a panel of 67 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for European inflation.
Download one of our sample reports to visualize what a Consensus Forecast is and see our European inflation projections.
Want to get access to the full dataset of European inflation forecasts? Send an email to info@focus-economics.com.
Latest Global Inflation News
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Israel: Inflation decelerates in August from the prior month -
Canada: Inflation picks up in August from the prior month Latest reading: Consumer prices were up 1.9% on a year-on-year basis in August, following a 1.7% increase in the prior... -
India: Inflation rises for first time in 10 months in August Latest reading: After declining for nine months, inflation rose to 2.1% in August from July’s over eight-year low of 1.6%.... -
United States: Inflation comes in at highest level since January in August Latest reading: Inflation inched up to 2.9% in August, following July’s 2.7%. August’s reading represented the highest inflation rate since... -
Argentina: Inflation drops to lowest level since July 2018 in August Latest reading: Inflation eased to 33.6% in August, below July’s 36.6%. August’s figure marked the weakest inflation rate since July... -
Angola: Inflation falls to a near two-year low in August Latest reading: Inflation came in at 18.9% in August, down from 19.5% in July, easing for the 13th consecutive month... -
Belarus: Inflation drops to lowest level since May in August Latest reading: Inflation edged down to 7.2% in August, which followed July’s 7.4%. August’s figure represented the weakest inflation rate...