Eurozone Inflation Rate Unchanged at Near 3-Year Low

The annual inflation rate in Euro Area was at 1 percent in August 2019, unchanged from the previous month and in line with a preliminary estimate and market expectations, final data showed. It remained the lowest inflation rate since November 2016, as energy prices fell while cost of food, alcohol & tobacco rose further.
Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com 9/18/2019 9:14:08 AM
Cost of energy dropped 0.6 percent, after increasing 0.5 percent in July and non-energy industrial goods prices eased(0.3 percent from 0.4 percent). On the other hand, prices advanced at a faster pace for food, alcohol & tobacco (2.1 percent from 1.9 percent), boosted by unprocessed food (2.5 percent from 1.7 percent) while processed food, alcohol & tobacco slowed (1.9 percent from 2 percent); and services (1.3 percent from 1.2 percent). 

Among Eurozone's largest economies, the highest annual rate was recorded in France (1.3 percent), followed by Germany (1.0 percent), Italy (0.5 percent) and Spain (0.4 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, the same as in the previous month and matching market forecasts.

On a monthly basis, consumer prices went up 0.1 percent, rebounding from a 0.5 percent fall in the prior month and below market forecasts of 0.2 percent.

Eurozone Inflation Rate Unchanged at Near 3-Year Low