Eurozone July Inflation Rate Confirmed at 1.3%

Consumer prices in the Euro Area increased by 1.3 percent year-on-year in July 2017, the same pace as in the previous month and in line with the preliminary estimate. The inflation rate stood at its lowest level since December last year, as prices of unprocessed food rose at a slower pace while cost of energy, processed food, alcohol and tobacco, and non-energy industrial goods grew further.

Year-on-year, cost of unprocessed food went up by 0.6 percent, easing from a 1 percent gain in the previous month. Meanwhile, prices rose further for: Energy (2.2 percent from 1.9 percent); processed food, alcohol and tobacco (1.9 percent from 1.6 percent); and non-energy industrial goods (0.5 percent from 0.4 percent). Services inflation was steady at 1.6 percent.

Among major Member States, the highest annual rates were registered in Spain (1.7 percent), Germany (1.5 percent), Italy (1.2 percent) and France (0.8 percent). Irish consumer prices dropped 0.2 percent.

Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, rose to 1.2 percent from 1.1 percent in June.

On a monthly basis, consumer prices fell 0.5 percent, in line with market consensus and after showing no growth in June.

Eurozone July Inflation Rate Confirmed at 1.3%

Eurostat | Joana Ferreira |
8/17/2017 9:14:50 AM