STAT/08/85
16 June 2008
May 2008
Euro area annual inflation up
to 3.7%
EU up to 3.9%
Euro area1 annual inflation was 3.7% in May 20082, up from 3.3% in April. A year earlier the rate was 1.9%. Monthly inflation was 0.6% in May 2008.
EU3 annual inflation was 3.9% in May 2008, up from 3.6% in April. A year earlier the rate was 2.1%. Monthly inflation was 0.6% in May 2008.
These figures come from Eurostat, the Statistical Office of the European Communities.
Inflation in the EU Member States
In May 2008, the lowest annual rates were observed in the Netherlands (2.1%), Portugal (2.8%) and Germany (3.1%), and the highest in Latvia (17.7%), Bulgaria (14.0%) and Lithuania (12.3%). Compared with April 2008, annual inflation rose in twenty-one Member States, remained stable in three and fell in two.
The lowest 12-month averages4 up to May 2008 were registered in the Netherlands (1.7%), Denmark and Malta (both 2.3%), and the highest in Latvia (13.8%), Bulgaria (10.9%) and Estonia (9.3%).
Euro area
The main components with the highest annual rates in May 2008 were food (6.4%), transport (5.9%) and housing (5.7%), while the lowest annual rates were observed for communications (-1.7%), recreation & culture (0.1%) and clothing (0.7%). Concerning the detailed sub-indices, fuels for transport (+0.55 percentage points), heating oil (+0.35) and milk, cheese & eggs (+0.21) had the largest upward impacts on the headline rate, while cars (-0.18), telecommunications and garments (-0.17 each) had the biggest downward impacts.
The main components with the highest monthly rates were transport (1.8%), housing (0.8%) and recreation & culture (0.7%), and the lowest were communications (-0.2%), health (0.0%) and clothing (0.1%). In particular, fuels for transport (+0.23 percentage points), heating oil (+0.09) and package holidays (+0.06) had the largest upward impacts, while cars, milk, cheese & eggs, garments, rents and telecommunications (-0.03 each) had the biggest downward impacts.
Annual inflation (%) in May 2008 in ascending order
Euro area
|
NL
|
PT
|
DE5
|
IE
|
FR
|
IT
|
Euro area
|
AT
|
MT
|
FI
|
CY
|
ES
|
LU
|
EL
|
BE
|
SI
|
|
2.1p
|
2.8
|
3.1
|
3.7
|
3.7
|
3.7
|
3.7p
|
3.8p
|
4.1
|
4.1
|
4.6
|
4.7
|
4.8
|
4.9
|
5.1
|
6.2
|
EU Member States outside the euro area
|
UK6
|
DK
|
SE
|
EU
|
SK
|
PL
|
CZ
|
HU
|
RO
|
EE
|
LT
|
BG
|
LV
|
|
Apr 08
3.0 |
3.6
|
3.9
|
3.9p
|
4.0
|
4.3
|
6.8
|
6.9
|
8.5
|
11.4
|
12.3
|
14.0
|
17.7
|
Inflation rates in %, measured by HICPs
|
|
Annual rates
|
12 month average rates4
|
Monthly rates
|
||||
|
|
May 08
May 07 |
Apr 08
Apr 07 |
Mar 08
Mar 07 |
Feb 08
Feb 07 |
May 07
May 06 |
May
08-07
May 07-06 |
May 08
Apr 08 |
|
Belgium (BE)
|
5.1
|
4.1
|
4.4
|
3.6
|
1.3
|
2.8
|
0.9
|
|
Germany (DE)5
|
3.1
|
2.6
|
3.3
|
3.0
|
2.0
|
2.7
|
0.7
|
|
Ireland (IE)
|
3.7
|
3.3
|
3.7
|
3.5
|
2.7
|
3.1
|
0.6
|
|
Greece (EL)
|
4.9
|
4.4
|
4.4
|
4.5
|
2.6
|
3.7
|
0.7
|
|
Spain (ES)
|
4.7
|
4.2
|
4.6
|
4.4
|
2.4
|
3.7
|
0.7
|
|
France (FR)
|
3.7
|
3.4
|
3.5
|
3.2
|
1.2
|
2.5
|
0.6
|
|
Italy (IT)
|
3.7
|
3.6
|
3.6
|
3.1
|
1.9
|
2.7
|
0.6
|
|
Cyprus (CY)
|
4.6
|
4.3
|
4.4
|
4.7
|
1.9
|
3.4
|
0.8
|
|
Luxembourg (LU)
|
4.8
|
4.3
|
4.4
|
4.2
|
2.3
|
3.5
|
1.0
|
|
Malta (MT)
|
4.1
|
4.1
|
4.3
|
4.0
|
-1.0
|
2.3
|
0.7
|
|
Netherlands (NL)
|
2.1p
|
1.7
|
1.9
|
2.0
|
2.0
|
1.7p
|
0.4p
|
|
Austria (AT)
|
3.8p
|
3.4
|
3.5
|
3.1
|
1.9
|
2.9p
|
0.6p
|
|
Portugal (PT)
|
2.8
|
2.5
|
3.1
|
2.9
|
2.4
|
2.6
|
0.5
|
|
Slovenia (SI)
|
6.2
|
6.2
|
6.6
|
6.4
|
3.1
|
5.3
|
1.2
|
|
Finland (FI)
|
4.1
|
3.3
|
3.6
|
3.3
|
1.3
|
2.5
|
0.5
|
|
Euro area (MUICP)
|
3.7p
|
3.3
|
3.6
|
3.3
|
1.9
|
2.8p
|
0.6p
|
|
Bulgaria (BG)
|
14.0
|
13.4
|
13.2
|
12.2
|
4.5
|
10.9
|
0.9
|
|
Czech Republic (CZ)
|
6.8
|
6.7
|
7.1
|
7.6
|
2.4
|
5.1
|
0.4
|
|
Denmark (DK)
|
3.6
|
3.4
|
3.3
|
3.3
|
1.7
|
2.3
|
0.4
|
|
Estonia (EE)
|
11.4
|
11.6
|
11.2
|
11.5
|
5.9
|
9.3
|
0.6
|
|
Latvia (LV)
|
17.7
|
17.4
|
16.6
|
16.5
|
7.8
|
13.8
|
1.0
|
|
Lithuania (LT)
|
12.3
|
11.9
|
11.4
|
10.9
|
5.0
|
8.6
|
0.8
|
|
Hungary (HU)
|
6.9
|
6.8
|
6.7
|
6.7
|
8.4
|
7.2
|
0.9
|
|
Poland (PL)
|
4.3
|
4.3
|
4.4
|
4.6
|
2.3
|
3.6
|
0.6
|
|
Romania (RO)
|
8.5
|
8.7
|
8.7
|
8.0
|
3.9
|
6.7
|
0.5
|
|
Slovakia (SK)
|
4.0
|
3.7
|
3.6
|
3.4
|
1.5
|
2.6
|
0.4
|
|
Sweden (SE)
|
3.9
|
3.2
|
3.2
|
2.9
|
1.2
|
2.4
|
0.5
|
|
United Kingdom (UK)6
|
:
|
3.0
|
2.5
|
2.5
|
2.5
|
:
|
:
|
|
EU (EICP)
|
3.9p
|
3.6
|
3.8
|
3.5
|
2.1
|
3.0p
|
0.6p
|
|
Iceland (IS)
|
11.7
|
10.7
|
6.8
|
4.5
|
4.0
|
4.6
|
1.9
|
|
Norway (NO)
|
2.8
|
2.7
|
2.8
|
3.1
|
0.6
|
1.5
|
0.3
|
|
EEA (EEAICP)
|
3.9p
|
3.6
|
3.7
|
3.5
|
2.1
|
2.9p
|
0.6p
|
|
Switzerland (CH)7
|
2.6
|
2.3
|
2.5
|
2.3
|
0.6
|
1.7
|
0.6
|
Source: Eurostat p = provisional : = data not available
Euro area inflation rates in % for main components, measured by HICPs
|
|
Weight used in 2008
|
Annual rates
|
12 month average rates4
|
Monthly rates
|
||||
|
Euro area (MUICP)
|
|
May 08
May 07 |
Apr 08
Apr 07 |
Mar 08
Mar 07 |
Feb 08
Feb 07 |
May 07
May 06 |
May
08-07
May 07-06 |
May 08
Apr 08 |
|
00 All-items
|
1000.0
|
3.7p
|
3.3
|
3.6
|
3.3
|
1.9
|
2.8p
|
0.6p
|
|
01 Food
|
157.8
|
6.4p
|
6.0
|
6.2
|
5.8
|
2.1
|
4.3p
|
0.5p
|
|
02 Alcohol and tobacco
|
37.2
|
3.4p
|
3.2
|
3.1
|
3.0
|
3.6
|
3.1p
|
0.2p
|
|
03 Clothing
|
68.3
|
0.7p
|
0.8
|
1.0
|
1.0
|
1.3
|
0.9p
|
0.1p
|
|
04 Housing
|
153.0
|
5.7p
|
4.8
|
4.4
|
4.0
|
2.2
|
3.5p
|
0.8p
|
|
05 Household equipment
|
70.1
|
2.0p
|
2.2
|
2.2
|
2.1
|
1.6
|
1.9p
|
0.2p
|
|
06 Health
|
40.5
|
1.6p
|
1.6
|
1.6
|
1.5
|
1.8
|
1.6p
|
0.0p
|
|
07 Transport
|
156.6
|
5.9p
|
4.8
|
5.6
|
5.4
|
1.6
|
4.1p
|
1.8p
|
|
08 Communications
|
32.9
|
-1.7p
|
-1.6
|
-1.5
|
-3.1
|
-1.8
|
-1.9p
|
-0.2p
|
|
09 Recreation and culture
|
96.8
|
0.1p
|
-0.4
|
0.6
|
0.0
|
0.2
|
0.1p
|
0.7p
|
|
10 Education
|
10.4
|
3.7p
|
3.6
|
9.6
|
9.6
|
9.2
|
8.4p
|
0.2p
|
|
11 Hotels and restaurants
|
92.8
|
3.3p
|
3.2
|
3.6
|
3.3
|
3.2
|
3.3p
|
0.4p
|
|
12 Miscellaneous
|
83.6
|
2.4p
|
2.4
|
2.4
|
2.3
|
2.3
|
2.3p
|
0.2p
|
|
All-items
-excl. energy |
901.9
|
2.6p
|
2.5
|
2.8
|
2.5
|
2.0
|
2.3p
|
0.3p
|
|
-excl. energy, FoodAlcTob*
|
706.8
|
1.7p
|
1.6
|
2.0
|
1.8
|
1.9
|
1.8p
|
0.3p
|
|
-excl. energy, unproc. food
|
825.8
|
2.5p
|
2.4
|
2.7
|
2.4
|
1.9
|
2.2p
|
0.2p
|
|
-excl. energy, seas. food
|
862.6
|
2.5p
|
2.4
|
2.7
|
2.5
|
2.0
|
2.3p
|
0.2p
|
|
-excl. tobacco
|
977.4
|
3.7p
|
3.3
|
3.6
|
3.3
|
1.8
|
2.8p
|
0.6p
|
|
Energy
|
98.1
|
13.7p
|
10.8
|
11.2
|
10.4
|
0.3
|
7.0p
|
3.6p
|
|
FoodAlcTob*
|
195.0
|
5.7p
|
5.4
|
5.6
|
5.2
|
2.4
|
4.1p
|
0.4p
|
Source: Eurostat * FoodAlcTob = Food, alcohol and tobacco p = provisional
Euro area sub-indices with most important impacts
|
|
Weight (‰) 2008
|
Rate (%)
|
Impact (percentage points)
|
|
|
COICOP
|
May 08 / May 07
|
|||
|
07.22
|
Fuels for transport
|
45.7
|
15.2p
|
0.55
|
|
04.53
|
Heating oil
|
9.1
|
47.5p
|
0.35
|
|
01.14
|
Milk, cheese and eggs
|
23.0
|
13.6p
|
0.21
|
|
01.11
|
Bread and cereals
|
25.9
|
9.6p
|
0.15
|
|
04.52
|
Gas
|
15.4
|
9.2p
|
0.09
|
|
01.16
|
Fruit
|
12.1
|
7.4p
|
0.05
|
|
09.11
|
Audio-visual equipment
|
5.2
|
-10.4p
|
-0.07
|
|
09.13
|
IT equipment
|
5.1
|
-14.3p
|
-0.09
|
|
04.11/2
|
Rents
|
60.0
|
1.9p
|
-0.12
|
|
03.12
|
Garments
|
50.4
|
0.6p
|
-0.17
|
|
08.2/3
|
Telecommunications
|
31.2
|
-1.9p
|
-0.17
|
|
07.11
|
Cars
|
44.2
|
-0.3p
|
-0.18
|
|
|
May 08 / April 08
|
|
|
|
|
07.22
|
Fuels for transport
|
45.7
|
5.3p
|
0.23
|
|
04.53
|
Heating oil
|
9.1
|
9.7p
|
0.09
|
|
09.60
|
Package holidays
|
15.9
|
4.7p
|
0.06
|
|
01.17
|
Vegetables
|
15.7
|
2.0p
|
0.02
|
|
01.16
|
Fruit
|
12.1
|
2.3p
|
0.02
|
|
07.33
|
Air transport
|
5.2
|
2.2p
|
0.01
|
|
11.11
|
Restaurants and cafés
|
68.2
|
0.3p
|
-0.02
|
|
08.2/3
|
Telecommunications
|
31.2
|
-0.2p
|
-0.03
|
|
04.11/2
|
Rents
|
60.0
|
0.2p
|
-0.03
|
|
03.12
|
Garments
|
50.4
|
0.0p
|
-0.03
|
|
01.14
|
Milk, cheese and eggs
|
23.0
|
-0.7p
|
-0.03
|
|
07.11
|
Cars
|
44.2
|
-0.1p
|
-0.03
|
Source: Eurostat p = provisional
Measures of inflation
The 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.
The 12-month average rate4 overcomes this volatility by comparing average Harmonized 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.
The monthly rate compares price levels between the two latest months. Although up-to-date, it can be affected by seasonal and other effects.
The 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
Harmonized Indices of Consumer Prices (HICPs) are harmonized inflation figures required under Article 121 of the Treaty of Amsterdam (109j of the Treaty on European Union). They are designed for international comparison of consumer price inflation. The focus is on quality and comparability among the indices of different countries as well as on their relative movements.
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 euro area, in the European Union, 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. The HICP is computed as an annual chain index 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 euro area total. 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 Statistics in focus, Economy and Finance, Harmonized indices of consumer prices. About 100 MUICP, EICP, EEAICP and HICP sub-indices with corresponding weights are available in Eurostat’s database. For technical notes on HICPs see: Eurostat News Release 21/97, 5 March 1997, Harmonizing the way EU measures inflation, Eurostat Memo 8/98, 4 May 1998, New monetary union index of consumer prices (MUICP), Eurostat Memo 02/00, 18 February 2000, Improved EU Harmonized Index of Consumer Prices: Extended coverage and earlier release dates for the HICP, and the HICP short guide for users. Further details can be found on the HICP section of the Eurostat website: http://epp.eurostat.ec.europa.eu/pls/portal/url/page/PGP_DS_HICP.
Future release dates
Provisional publication dates for the coming months are:
|
Index for
|
MUICP flash estimates
|
HICP News Releases
|
|
June 2008
|
30 June 2008
|
16 July 2008
|
|
July 2008
|
31 July 2008
|
14 August 2008
|
|
August 2008
|
29 August 2008
|
16 September 2008
|
- 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, and Cyprus and Malta from 1 January 2008. New Member States are integrated into the MUICP using a chain index formula.
- The MUICP flash estimate for May 2008, published on 30 May 2008, was 3.6%.
- 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 30 April 2004, 25 Member States from 1 May 2004 until 31 December 2006 and 27 Member States from 1 January 2007. New Member States are integrated into the EICP using a chain index formula.
- Measure used to determine price stability in Convergence reports of 1998, 2000, 2002, 2004, 2006 and 2007 by the Commission to the Council.
- Price collection periods for the German HICP have been adjusted from January 2008 onwards to be in line with the temporal coverage regulation. Further information on the impact can be found on the German statistical office website at: http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/Navigation/Statistics/Preise/Verbraucherpreise/Verbraucherpreise.psml under 'Methodological note'.
- Data for the United Kingdom for May 2008 were not available in time for publication. Due to this fact, EU and EEA totals were calculated using Eurostat estimates.
- Switzerland started producing HICPs from January 2008. HICP estimates for 2005-2007 are not fully compliant with HICP methodology.
|
Issued by:
Eurostat Press Office Tim ALLEN Tel: +352-4301-33 444 mailto:eurostat-pressoffice@ec.europa.eu |
For further information on Methodology:
Angelica ARELLANO-VAILLANT Tatiana MRLIANOVA Christine WIRTZ Tel: +352-4301-38 137 mailto:estat-hicp-methods@ec.europa.eu |
Eurostat News Releases on the Internet: http://ec.europa.eu/eurostat
Selected Principal European Economic Indicators: http://ec.europa.eu/eurostat/euroindicators