Eurozone July Inflation Rate Revised Down to Near 3-Year Low

The annual inflation rate in Euro Area decreased to 1 percent in July of 2019 from 1.3 percent in the previous month and below preliminary estimates of 1.1 percent. It was the lowest inflation since November of 2016, as cost went up at a softer pace for energy and services.

Prices slowed for energy (0.5 percent from 1.7 percent in June) and services (1.2 percent from 1.6 percent). On the other hand, cost rose faster for food, alcohol & tobacco (1.9 percent from 1.6 percent), of which processed food, alcohol & tobacco (2 percent from 1.9 percent) and unprocessed food (1.7 percent from 0.7 percent); and non-energy industrial goods (0.4 percent from 0.3 percent). 

Among Eurozone's largest economies, the highest annual rate was recorded in France (1.3 percent), followed by Germany (1.1 percent), Spain (0.6 percent) and Italy (0.3 percent).

The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, was confirmed at 0.9 percent, down from 1.1 percent in the prior month and in line with market consensus.

On a monthly basis, consumer prices dropped 0.5 percent, after a 0.2 percent gain in June and compared with flash estimates of a 0.4 percent decrease. 

Eurozone July Inflation Rate Revised Down to Near 3-Year Low

Eurostat | Agna Gabriel |
8/19/2019 9:13:46 AM