The European bureau of statistics released Monday the latest inflation numbers for the euro zone and the European Union. The overall figures shows an annual inflation rate at 1,7% in July for the euro zone, up from 1,4% a year earlier, to the highest level in 20 months. However, on monthly basis the euro zone inflation was negative by -0,2% in July. Annual inflation rose in nineteen EU Member States in July, remained stable in one and fell in six.
“In July 2010, the lowest annual rates were observed in Ireland with -1.2% and the highest in Romania with 7.1%.”
The euro area annual inflation was 1.7% last month, up from 1.4% in June. A year earlier the rate was -0.6%. However, the monthly inflation was -0.3% in July, the European Bureau of Statistics, Eurostat, reported on Monday. Amongst the all EU member states, the annual inflation was 2.1% in July, up from 1.9% in June. A year earlier the annual rate was 0.2%. In July, the EU’s monthly inflation was -0.2%.
And the difference in inflation amongst the EU members are bigger than ever.
A fact that makes the European Central Bank‘s job even more difficult.
Some media reports Monday that the European inflation are picking up.
Personally I can’t see any clear trend, yet.
From Minus 1,2 To Plus 7,1
In July 2010, the lowest annual rates were observed in Ireland (-1.2%), Latvia (-0.7%) and Slovakia (1.0%).
The highest annual inflation is found in Romania (7.1%), Greece (5.5%) and Hungary (3.6%).
Compared with June 2010, annual inflation rose in nineteen Member States, remained stable in one and fell in six, Eurostat reports.
The lowest 12-month averages4 up to July 2010 were registered in Ireland (-2.4%), Latvia (-1.8%) and Portugal (0.0%), and the highest in Hungary (5.1%), Romania (4.8%) and Poland (3.3%).
Interesting to compare the figures above with a few forecasts.
Here’s Saxo Bank’s CPI forecast for the euro zone and UK:
This is the Central Bank of Norway’s latest national CPI forecast:
And here’s another interesting chart, comparing the inflation with the money supply:
Time For New Wardrobes
Prices on clothes have dropped nearly 10% over the last weeks, while prices on transport, alcohol and tobacco and housing have rose substantially.
The main components with the highest annual rates in July 2010 were transport (4.5%), alcohol & tobacco (3.3%) and housing (2.7%), while the lowest annual rates were observed for communications (-0.8%), recreation & culture (-0.3%) and household equipment (0.5%).
Concerning the detailed sub-indices, fuels for transport (+0.48 percentage points), heating oil (+0.17) and tobacco (+0.07) had the largest upward impacts on the headline rate, while telecommunications (-0.09) and cars (-0.07) had the biggest downward impacts.
The main components with the highest monthly rates were recreation & culture (1.2%), hotels & restaurants (1.1%) and transport (0.5%), while the lowest were clothing (-9.7%) and household equipment (-0.6%).
In particular, package holidays (+0.15 percentage points) and accommodation services (+0.11) had the largest upward impacts, while garments (-0.51) and footwear (-0.12) had the biggest downward impacts.
Related articles by Zemanta
- Eurozone inflation hits near two-year high (telegraph.co.uk)
- Euro-Zone Inflation Accelerates (online.wsj.com)
- Euro-zone July annual CPI accelerates to 1.7% (marketwatch.com)
- Euro-Zone Inflation Rises on Higher Energy Prices (nytimes.com)
- Analysis: Eurozone HICP Confirmed At 1.7% Y/Y in July (forexlive.com)