Eurozone Inflation Rate Slows to 2% in August



The annual inflation rate in the Euro Area is expected to ease to 2 percent in August 2018 from the previous month's five-and-a-half-year high of 2.1 percent, missing market expectations of 2.1 percent. Prices should rise at a softer pace for services, energy and non-energy industrial goods.

Looking at the main components of euro area inflation, prices are expected to rise at a slower pace for: services (1.3 percent vs 1.4 percent in July); energy (9.2 percent vs 9.5 percent); and non-energy industrial goods (0.3 percent vs 0.5 percent). Meanwhile, food, alcohol & tobacco inflation should remain unchanged at 2.5 percent, as processed food, alcohol & tobacco inflation stood at 2.4 percent and unprocessed food prices increased at softer rate (2.5 percent vs 2.6 percent).

Annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is expected to slow to 1 percent in August from 1.1 percent in July, also below market consensus of 1.1 percent.

Eurozone Inflation Rate Slows to 2% in August


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/31/2018 9:17:08 AM