Eurozone August Inflation Rate Steady at Near 3-Year Low


The annual inflation rate in the Euro Area came in at 1 percent in August 2019, unchanged from the previous month and in line with market consensus, a preliminary estimate showed. It remained the lowest inflation rate since November 2016, as cost of energy is expected to fall while prices of food, alcohol & tobacco and services are seen rising further.

Year-on-year, cost of energy should fall 0.6 percent, after rising 0.5 percent in July. On the other hand, prices of food, alcohol and tobacco is expected to increase to 2.1 percent from 1.9 percent in the prior month, driven by unprocessed food (2.5 percent from 1.7 percent) while processed food, alcohol and tobacco is projected to remain steady at 2 percent. Also, cost of services should went up to 1.3 percent, faster than a 1.2 percent in July while prices of non-energy industrial goods are seen rising 0.4 percent, the same pace as in the previous month. 

The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is likely to remain unchanged at 0.9 percent, below market forecasts of 1 percent.

Eurozone August Inflation Rate Steady at Near 3-Year Low


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
8/30/2019 9:13:22 AM