Inflation in euro area falls

Consumer prices in the euro area increased by 5.3 per cent in July as compared with the same month last year, according to the EU’s statistical agency Eurostat in Luxembourg. Inflation was down from 5.5 per cent in the previous month.

In contrast to the overall inflation rate, the core rate excluding fluctuation-prone prices for commodities such as energy, did not go down. It remained stuck at the previous month’s level of 5.5 per cent.

The upward price trend weakened in many segments. Although food and luxury items were still 10.8 per cent more expensive than a year earlier, the trend is continuing to decline. Energy prices decreased significantly by 6.1 per cent following a dramatic rise last year. The price of industrial goods rose less sharply than in the previous month, whereas price increases accelerated in the services sector.

The lowest inflation rate was in Belgium (+1.7 per cent) and Luxembourg (+2.0 per cent), while the highest was experienced by Slovakia (+10.3 per cent). In Germany, the inflation rate increased by 6.5 per cent, thus above the average for the euro area.