STAT/12/160
15 November 2012
October 2012
Euro area annual inflation down to 2.5%
EU down to 2.6%
Euro area1 annual inflation was 2.5% in October 2012, down from 2.6% in September2. A year earlier the rate was 3.0%. Monthly inflation was 0.2% in October 2012.
EU3 annual inflation was 2.6% in October 2012, down from 2.7% in September. A year earlier the rate was 3.4%. Monthly inflation was 0.3% in October 2012.
These figures come from Eurostat, the statistical office of the European Union.
Inflation in the EU Member States
In October 2012, the lowest annual rates were observed in Greece (0.9%), Sweden (1.2%) and Latvia (1.6%), and the highest in Hungary (6.0%), Romania (5.0%) and Estonia (4.2%). Compared with September 2012, annual inflation fell in thirteen Member States, remained stable in four and rose in ten.
The lowest 12-month averages4 up to October 2012 were registered in Sweden (0.9%), Greece (1.4%) and Ireland (1.9%), and the highest in Hungary (5.5%), Estonia (4.3%) and Poland (4.0%).
Euro area
The main components with the highest annual rates in October 2012 were transport (4.1%), alcohol & tobacco and housing (both 4.0%), while the lowest annual rates were observed for communications (-3.5%), recreation & culture (1.0%), clothing and household equipment (both 1.2%). Concerning the detailed sub-indices, fuels for transport (+0.32 percentage points), heating oil (+0.10) and electricity (+0.09) had the largest upward impacts on the headline rate, while telecommunications (-0.19), cars (-0.08) and garments (-0.07) had the biggest downward impacts.
The main components with the highest monthly rates were clothing and education (both 2.2%) followed by alcohol & tobacco (0.9%), while the lowest monthly rates were observed for transport (-0.6%), communications (-0.4%), recreation & culture and hotels & restaurants (both -0.3%). In particular, garments (+0.10 percentage points), footwear, vegetables and tobacco (+0.03 each) had the largest upward impacts, while fuels for transport (-0.13), accommodation services (-0.05) and package holidays (-0.04) had the biggest downward impacts.
Annual inflation (%) in October 2012 in ascending order
Euro area
EL | DE | IE | FR | PT | Euro area | BE | CY | IT | AT | LU | MT | SI | NL | ES | FI | SK | EE |
0.9 | 2.1 | 2.1 | 2.1 | 2.1 | 2.5p | 2.6 | 2.6 | 2.8 | 2.9p | 3.2 | 3.2 | 3.2 | 3.3 | 3.5 | 3.5 | 3.9 | 4.2 |
EU Member States outside the euro area
SE | LV | DK | EU | UK | BG | LT | PL | CZ | RO | HU |
1.2 | 1.6 | 2.3 | 2.6p | 2.7 | 3.0 | 3.2 | 3.4 | 3.6 | 5.0 | 6.0 |
Inflation rates in %, measured by HICPs
Annual rates | 12 month average rates4 | Monthly rates | |||||
Oct 12 Oct 11 | Sep 12 Sep 11 | Aug 12 Aug 11 | Jul 12 Jul 11 | Oct 11 Oct 10 | Oct 12-11 Oct 11-10 | Oct 12 Sep 12 | |
Belgium (BE) | 2.6 | 2.6 | 2.6 | 2.0 | 3.4 | 2.8 | 0.2 |
Germany (DE) | 2.1 | 2.1 | 2.2 | 1.9 | 2.9 | 2.2 | 0.1 |
Estonia (EE) | 4.2 | 4.1 | 4.2 | 4.1 | 4.7 | 4.3 | 0.1 |
Ireland (IE) | 2.1 | 2.4 | 2.6 | 2.0 | 1.5 | 1.9 | -0.1 |
Greece (EL) | 0.9 | 0.3 | 1.2 | 0.9 | 2.9 | 1.4 | 0.7 |
Spain (ES) | 3.5 | 3.5 | 2.7 | 2.2 | 3.0 | 2.4 | 0.5 |
France (FR) | 2.1 | 2.2 | 2.4 | 2.2 | 2.5 | 2.4 | 0.2 |
Italy (IT) | 2.8 | 3.4 | 3.3 | 3.6 | 3.8 | 3.5 | 0.3 |
Cyprus (CY) | 2.6 | 3.6 | 4.5 | 3.8 | 3.2 | 3.5 | 0.2 |
Luxembourg (LU) | 3.2 | 3.2 | 2.8 | 2.7 | 3.8 | 3.1 | 0.1 |
Malta (MT) | 3.2 | 2.9 | 3.2 | 4.2 | 2.5 | 3.0 | -0.7 |
Netherlands (NL) | 3.3 | 2.5 | 2.5 | 2.6 | 2.8 | 2.7 | 0.8 |
Austria (AT) | 2.9p | 2.8 | 2.3 | 2.1 | 3.8 | 2.7p | 0.3p |
Portugal (PT) | 2.1 | 2.9 | 3.2 | 2.8 | 4.0 | 3.1 | 0.1 |
Slovenia (SI) | 3.2 | 3.7 | 3.1 | 2.6 | 2.9 | 2.7 | 0.3 |
Slovakia (SK) | 3.9 | 3.8 | 3.8 | 3.8 | 4.6 | 3.9 | 0.4 |
Finland (FI) | 3.5 | 3.4 | 3.3 | 3.1 | 3.2 | 3.1 | 0.2 |
Euro area (MUICP) | 2.5p | 2.6 | 2.6 | 2.4 | 3.0 | 2.6p | 0.2p |
Bulgaria (BG) | 3.0 | 3.4 | 3.1 | 2.4 | 3.0 | 2.3 | -0.1 |
Czech Republic (CZ) | 3.6 | 3.5 | 3.4 | 3.3 | 2.6 | 3.6 | 0.3 |
Denmark (DK) | 2.3 | 2.5 | 2.6 | 2.1 | 2.7 | 2.4 | -0.1 |
Latvia (LV) | 1.6 | 1.9 | 1.9 | 1.9 | 4.3 | 2.7 | -0.2 |
Lithuania (LT) | 3.2 | 3.3 | 3.4 | 2.9 | 4.2 | 3.3 | -0.2 |
Hungary (HU) | 6.0 | 6.4 | 6.0 | 5.7 | 3.8 | 5.5 | 0.2 |
Poland (PL) | 3.4 | 3.8 | 3.8 | 4.0 | 3.8 | 4.0 | 0.2 |
Romania (RO) | 5.0 | 5.4 | 4.0 | 3.1 | 3.6 | 3.2 | 0.2 |
Sweden (SE) | 1.2 | 1.0 | 0.9 | 0.7 | 1.1 | 0.9 | 0.1 |
United Kingdom (UK) | 2.7 | 2.2 | 2.5 | 2.6 | 5.0 | 3.1 | 0.5 |
EU (EICP) | 2.6p | 2.7 | 2.7 | 2.5 | 3.4 | 2.8p | 0.3p |
Iceland (IS) | 5.1 | 5.3 | 4.5 | 5.4 | 5.3 | 6.0 | 0.2 |
Norway (NO) | 0.8 | 0.1 | 0.0 | -0.2 | 1.3 | 0.3 | 0.5 |
EEA (EEAICP) | 2.6p | 2.7r | 2.7 | 2.5 | 3.3 | 2.8p | 0.3p |
Switzerland (CH) | -0.1 | -0.3 | -0.5 | -0.8 | -0.4 | -0.8 | 0.1 |
Source: Eurostat p = provisional r = revised
Euro area inflation rates in % for main components, measured by HICPs
Weight used in 2012 | Annual rates | 12 month average rates4 | Monthly rates | |||||
Euro area (MUICP) | Oct 12 Oct 11 | Sep 12 Sep 11 | Aug 12 Aug 11 | Jul 12 Jul 11 | Oct 11 Oct 10 | Oct 12-11 Oct 11-10 | Oct 12 Sep 12 | |
00 All-items | 1000.0 | 2.5p | 2.6 | 2.6 | 2.4 | 3.0 | 2.6p | 0.2p |
01 Food | 152.4 | 2.9p | 2.7 | 2.6 | 2.5 | 3.1 | 2.8p | 0.6p |
02 Alcohol and tobacco | 38.3 | 4.0p | 4.0 | 4.5 | 4.7 | 4.4 | 4.3p | 0.9p |
03 Clothing | 68.0 | 1.2p | 1.6 | 1.7 | 3.1 | 2.3 | 1.9p | 2.2p |
04 Housing | 162.8 | 4.0p | 4.1 | 4.1 | 3.8 | 5.1 | 4.2p | 0.3p |
05 Household equipment | 66.5 | 1.2p | 1.1 | 1.1 | 1.3 | 1.3 | 1.3p | 0.2p |
06 Health | 44.3 | 2.4p | 2.4 | 2.2 | 2.8 | 2.1 | 2.2p | 0.3p |
07 Transport | 154.3 | 4.1p | 4.8 | 4.8 | 3.2 | 5.8 | 4.3p | -0.6p |
08 Communications | 31.3 | -3.5p | -3.3 | -3.1 | -3.1 | -1.9 | -2.8p | -0.4p |
09 Recreation and culture | 92.6 | 1.0p | 1.1 | 0.8 | 1.0 | 0.3 | 0.9p | -0.3p |
10 Education | 10.4 | 3.0p | 0.5 | 1.0 | 0.7 | 0.9 | 1.0p | 2.2p |
11 Hotels and restaurants | 91.8 | 1.7p | 1.9 | 2.0 | 2.1 | 2.0 | 1.9p | -0.3p |
12 Miscellaneous | 87.4 | 2.0p | 1.9 | 1.9 | 1.6 | 2.2 | 2.1p | 0.3p |
All-items | 890.1 | 1.8p | 1.8 | 1.8 | 2.0 | 2.0 | 1.9p | 0.3p |
-excl. energy, FoodAlcTob* | 699.4 | 1.5p | 1.5 | 1.5 | 1.7 | 1.6 | 1.6p | 0.2p |
-excl. energy, unproc. food | 817.9 | 1.6p | 1.6 | 1.7 | 1.9 | 2.0 | 1.8p | 0.3p |
-excl. energy, seas. food | 853.7 | 1.7p | 1.7 | 1.7 | 1.9 | 2.0 | 1.9p | 0.3p |
-excl. tobacco | 976.6 | 2.4p | 2.6 | 2.5 | 2.3 | 2.9 | 2.5p | 0.2p |
Energy | 109.9 | 8.0p | 9.1 | 8.9 | 6.1 | 12.4 | 8.5p | -0.5p |
FoodAlcTob* | 190.7 | 3.1p | 2.9 | 3.0 | 2.9 | 3.3 | 3.1p | 0.7p |
Source: Eurostat * FoodAlcTob = Food, alcohol and tobacco p = provisional
Euro area sub-indices with most important impacts
| Weight (‰) 2012 | Rate (%) | Impact (percentage points) | |||||
07.22 | Fuels for transport | 48.5 | 8.7p | 0.32 | ||||
04.53 | Heating oil | 8.9 | 13.8p | 0.10 | ||||
04.51 | Electricity | 26.4 | 5.9p | 0.09 | ||||
04.52 | Gas | 18.3 | 6.4p | 0.07 | ||||
01.17 | Vegetables | 14.0 | 7.3p | 0.07 | ||||
02.20 | Tobacco | 23.4 | 4.7p | 0.05 | ||||
09.11 | Audio-visual equipment | 5.0 | -7.6p | -0.05 | ||||
12.62 | Financial services | 6.8 | -5.0p | -0.05 | ||||
04.11/2 | Rents | 60.5 | 1.5p | -0.06 | ||||
03.12 | Garments | 50.7 | 1.1p | -0.07 | ||||
07.11 | Cars | 36.2 | 0.5p | -0.08 | ||||
08.2/3 | Telecommunications | 29.8 | -3.7p | -0.19 | ||||
October 12 / September 12 | ||||||||
03.12 | Garments | 50.7 | 2.1p | 0.10 | ||||
03.21/2 | Footwear | 13.6 | 2.7p | 0.03 | ||||
01.17 | Vegetables | 14.0 | 2.2p | 0.03 | ||||
02.20 | Tobacco | 23.4 | 1.4p | 0.03 | ||||
01.16 | Fruit | 11.8 | 2.2p | 0.02 | ||||
04.53 | Heating oil | 8.9 | 2.6p | 0.02 | ||||
07.11 | Cars | 36.2 | -0.1p | -0.01 | ||||
08.2/3 | Telecommunications | 29.8 | -0.4p | -0.02 | ||||
04.11/2 | Rents | 60.5 | -0.1p | -0.02 | ||||
09.60 | Package holidays | 14.2 | -2.7p | -0.04 | ||||
11.20 | Accommodation services | 16.5 | -2.5p | -0.05 | ||||
07.22 | Fuels for transport | 48.5 | -2.0p | -0.13 | ||||
Source: Eurostat p = provisional
Measures of inflation
An annual rate measures the price change between the current month and the same month of the previous year. This measure is responsive to recent changes in price levels but can be influenced by one-off effects in either month.
A 12-month average rate overcomes this volatility by comparing average Harmonised Indices of Consumer Prices (HICPs) in the latest 12 months to the average of the previous 12 months. This measure is less sensitive to transient changes in prices.
A monthly rate compares price levels between the two latest months. Although up-to-date, it can be affected by seasonal and other effects.
An impact of a particular component measures the change in the headline inflation due to the inclusion of that component in the HICP. The impact takes account of both the weight and whether the inflation for that component is higher or lower than the all‑items inflation rate. For example, the impact of ‘tobacco’ is equal to the difference between the all-items inflation rate and the rate for ‘all-items excluding tobacco’. Impacts are not strictly additive.
HICPs designed for international comparison
Harmonised Indices of Consumer Prices (HICPs) are harmonised inflation figures required under the Treaty on the Functioning of the European Union. They are designed for international comparison of consumer price inflation.
Price changes as measured by the HICPs, the Monetary Union Index of Consumer Prices (MUICP), the European Index of Consumer Prices (EICP) and the European Economic Area Index of Consumer Prices (EEAICP) are used as measures of inflation in the Member States in the European Union, in the euro area, and in the European Economic Area.
The MUICP is used by, among others, the European Central Bank (ECB) as a main indicator for monetary policy management for the euro area (see ECB press release, 8 May 2003).
The Member States’ HICPs are supplied by the National Statistical Institutes; the MUICP, EICP and EEAICP are compiled by Eurostat. HICPs are computed as annual chain indices allowing weights to be changed each year. HICP aggregates are calculated as weighted averages of the HICPs using the weights of the countries and sub-indices concerned. The weight of a country is its share of the household final monetary consumption expenditure in the total of the country group. For the MUICP this is expressed in euro, for the EICP and the EEAICP it is expressed in Purchasing Power Standards. The MUICP is treated as a single entity within the EICP and EEAICP starting from 1999.
Additional information
More information on HICPs can be obtained from the monthly publication Data in focus, Economy and Finance on "Harmonised indices of consumer prices". About 100 MUICP, EICP, EEAICP and HICP sub-indices with corresponding weights are available in Eurostat’s database. Further details can be found on the HICP section of the Eurostat website: http://epp.eurostat.ec.europa.eu/portal/page/portal/hicp/introduction.
Starting from 2012 a new regulation defining harmonised rules for deriving the weights for the HICP has been applied in the Member States. For further information on the change please see:
http://epp.eurostat.ec.europa.eu/portal/page/portal/hicp/documents_pub/HICP_weights_info_note.pdf
Future release dates
Scheduled publication dates for the coming months are:
Index for | Euro area flash estimates | HICP News Releases |
November 2012 | 30 November 2012 | 14 December 2012 |
December 2012 | 4 January 2013 | 16 January 2013 |
January 2013 | 1 February 2013 | 28 February 2013 |
1. Euro area inflation is measured by the MUICP (’Monetary Union Index of Consumer Prices’ as defined in Council Regulation (EC) No 2494/95 of 23 October 1995) which is the official euro area aggregate. The euro area initially included Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland. Greece was included from 1 January 2001, Slovenia from 1 January 2007, Cyprus and Malta from 1 January 2008, Slovakia from
1 January 2009 and Estonia from 1 January 2011. New Member States are integrated into the MUICP using a chain index formula.
2. The euro area flash estimate for October 2012, published on 31 October 2012, was 2.5%.
3. EU inflation is measured by the EICP (’European Index of Consumer Prices’ as defined in Council Regulation (EC) No 2494/95 of 23 October 1995) which is the official EU aggregate. The EU included 15 Member States until April 2004, 25 Member States from May 2004 until December 2006 and 27 Member States from January 2007. New Member States are integrated into the EICP using a chain index formula.
4. Measure used to determine price stability in Convergence reports by the Commission to the Council.
Issued by: Eurostat Press Office Tim ALLEN Tel: +352-4301-33 444 | For further information on methodology: Jarko PASANEN Tel: +352-4301-36 425 |
Eurostat News Releases on the internet: http://ec.europa.eu/eurostat
Selected Principal European Economic Indicators: http://ec.europa.eu/eurostat/euroindicators
