Euro Area Inflation Rate Down to 1.3% in August


In August, Euro Area's annual inflation rate is expected to be 1.3 percent, down from 1.6 percent in July and from 2.6 percent in August of 2012, according to a flash estimate. The biggest upward pressure on the overall index continues to be rising food prices.

Looking at the main components of Euro Area inflation, food, alcohol and tobacco is expected to have the highest annual rate in August (3.3 percent compared with 3.2 percent in July), followed by services (1.5 percent, compared with 1.4 percent), non-energy industrial goods (0.3 percent, down from 0.4 percent in July), and energy (-0.4 percent, compared with 1.6 percent a month earlier).

The core inflation rate, which excludes more volatile components such as energy, food, alcohol and tobacco, is expected to be 1.1 percent, unchanged the previous month and down from 1.5 percent in August of 2012.

Euro Area Inflation Rate Down to 1.3% in August


Eurostat | Nuno Fontes | nuno@tradingeconomics.com
8/30/2013 10:26:24 AM