Euro Area Inflation Rate Revised Down to 0.3%

Consumer prices in the Eurozone edged up 0.3 percent year-on-year in January of 2016, higher than a 0.2 percent growth in the previous month while missing preliminary figures of 0.4 percent. It was the highest level since May last year, mainly due to higher prices of restaurants and cafés while cost of fuels continued to hold back growth. On a monthly basis, consumer prices dropped sharply by 1.4 percent.

The largest upward impacts to euro area annual inflation came from restaurants and cafés (+0.10 percentage points), tobacco and fruit (+0.06 pp each), while fuels for transport (-0.28 pp), heating oil (-0.18 pp) and gas (-0.11 pp) had the biggest downward impacts.

European Union annual inflation was 0.2 percent in January 2016, stable compared with December. In January 2016, negative annual rates were observed in ten Member States. The lowest annual rates were registered in Poland (-1.7 percent), Romania (-1.5 percent) and Cyprus (-1.1 percent). The highest annual rates were recorded in Belgium (1.8 percent), Austria (1.4 percent) and Sweden (1.3 percent).

Core inflation rate excluding energy, food, alcohol and tobacco accelerated to 1 percent from 0.9 percent in the previous two months and excluding energy, the inflation rate remained unchanged at 1 percent. 

Euro Area Inflation Rate Revised Down to 0.3%

Eurostat | Joana Ferreira |
2/25/2016 10:15:45 AM