Eurozone July Inflation Rate Confirmed at 5-1/2-Year High

Euro area annual inflation rate was confirmed at 2.1 percent in July 2018, up from 2 percent in the previous month and the highest since December 2012. Main upward pressure came from energy and services, while food prices rose at a softer pace.

Inflation picked up for energy (9.5 percent vs 8 percent in June), services (1.4 percent vs 1.3 percent), and non-energy industrial goods (0.5 percent vs 0.4 percent). Meantime, prices of food, alcohol and tobacco rose at a softer pace (2.5 percent vs 2.7 percent), of which processed food, alcohol and tobacco (2.4 percent vs 2.6 percent) and unprocessed food (2.6 percent vs 2.9 percent).

Among Eurozone's largest economies, the highest annual rate was registered in France (2.6 percent), followed by Spain (2.3 percent), Germany (2.1 percent) and Italy (1.9 percent). 

Annual core inflation, which excludes volatile prices of energy, food, alcohol and tobacco and at which the ECB looks in its policy decisions, was also confirmed at 1.1 percent in July, above the previous month's final reading of 0.9 percent.

On a monthly basis, consumer prices fell 0.3 percent in July, compared with a 0.1 percent gain in June and matching market consensus.

Eurozone July Inflation Rate Confirmed at 5-1/2-Year High

Eurostat | Joana Ferreira |
8/17/2018 9:13:49 AM