Eurozone: Inflation inches up in September
September 28, 2012
According to a flash estimate released by Eurostat on 28 September, the harmonized index of consumer prices (HICP) rose in September 2.7% over the same month last year. The reading was up from August's 2.6% increase and marked the 22nd consecutive month in which inflation has remained above the European Central Bank's (ECB) target of close to, but below 2.0%. Month-on-month price variations, together with a more detailed set of data, will be provided on 16 October. According to detailed figures for August, consumer prices rose 0.4% over the previous month, contrasting the 0.5% decrease recorded in July and marking the first increase after three consecutive drops. As a result, annual headline inflation rose from 2.4% in July to 2.6%, which confirms the flash estimate released by Eurostat on 30 August. The core inflation index, which does not include prices for energy, rose 0.2% over the previous month (July: -0.7% mom). Annual core inflation was 1.7% in August, down from 1.9% in July. At a country level, 11 out of the 17 Eurozone economies posted annual inflation rates equal or above the regional average. Cyprus (4.5%) and Estonia (4.2%) recorded the highest annual inflation rates. At the other end of the spectrum, inflation was lowest in Greece (1.2%) and Germany (2.2%). Among the other major Eurozone economies, France (2.4%) recorded an inflation rate below the regional average in August, while inflation was in line with the regional average in Spain and above it in Italy (3.3%).
Author: Armando Ciccarelli, Head of Data Solutions