Euro Area Inflation Rate Slightly Higher than Expected

Eurozone's annual inflation rate for October came in at 0.1 percent, higher than a preliminary estimate of 0 percent and -0.1 percent in September. Core inflation rate accelerated to 1.1 percent, the highest in more than two years.

The largest upward pressure came from cost of  vegetables (+0.14 percentage points), restaurants and cafés (+0.10 pp) and fruit (+0.07 pp), while prices of transport (-0.68 pp), heating oil (-0.22 pp) and gas (-0.09 pp) declined.

Core inflation rate which excludes prices of energy, food, alcohol and tobacco was recorded at 1.1 percent, up from 0.9 percent in the previous two months and the highest since August of 2013. Excluding energy, consumer prices rose 1.2 percent, accelerating from 1 percent in September. 

On a monthly basis, consumer prices edged up 0.1 percent, lower than 0.2 percent in the previous month. 

In the European Union, the annual inflation rate was 0 percent, compared to -0.1 percent in September. Deflation was observed in thirteen Member States. Prises declined the most in Cyprus (-1.8 percent), Romania (-1.4 percent), Bulgaria (-1.2 percent), Slovenia (-1.1 percent) and Spain (-0.9 percent). The highest inlfation rates were recorded in Malta (1.6 percent), Belgium (1.2 percent), Sweden (0.9 percent), Austria and Portugal (both 0.7 percent). Compared with September 2015, annual inflation fell in four Member States, remained stable in seven and rose in sixteen.

Euro Area Inflation Rate Slightly Higher than Expected

Eurostat | Joana Taborda |
11/16/2015 12:21:24 PM