Inflation in the euro area

From Statistics Explained

Data from April 2013. Most recent data: Further Eurostat information, Main tables and Database.

The data in this article show the most recent annual rates of change for the euro area headline inflation and its four main components issued by Eurostat. The figures presented are actual HICP figures.

Table 1: Euro area annual inflation and its main components (%), 2013, April 2012 and November 2012 - April 2013
Source: Eurostat (prc_hicp_manr)

Figure 1: Euro area annual inflation and its main components (%), 2002-2013-04
Source: Eurostat (prc_hicp_manr)

Figure 2: Euro area annual inflation and its main components (%), September 2010 - April 2013
Source: Eurostat (prc_hicp_manr)

Figure 3: Weights of the main components of the euro area HICP (2013)
Source: Eurostat (prc_hicp_inw)

Table 2: Relative weights of the HICP main components (%) (2013)
Source: Eurostat (prc_hicp_inw)

Main statistical findings

Euro area annual inflation was 1.2% in April 2013, down from 1.7% in March 2013. A year earlier the rate was 2.6%. The flash estimate for April, published on 30 April 2013, was confirmed. Further information on the accuracy of the flash estimates can be found can be found in the article Inflation – methodology of the euro area flash estimate.

Looking at the main components of the euro area inflation, 'Food, alcohol & tobacco' (2.9%, up from 2.7% in March) had the highest annual rate in March, followed by 'Services' (1.1%, down from 1.8% in March), 'Non-energy industrial goods' (0.8%, down from 1.0% in March) and 'Energy' (‑0.4%, down from 1.7% in March).

Flash estimate and full HICP data

The euro area inflation flash estimate is issued at the end of each reference month or shortly after. When the complete set of harmonised indices of consumer prices (HICP) is released around the middle of each month following the reference month, estimated data are replaced by actual data derived from the Member States figures. Further information on the accuracy of the flash estimates can be found in the article Inflation – methodology of the euro area flash estimate.

As from September 2012, the flash estimate release includes, in addition to the headline inflation, estimates of its four main components.

The main components and their relative weights for 2013 are presented in Figure 3 and Table 2, respectively.

Main components of inflation

Each of the main components contributes in varying degree to the headline inflation in the euro area. In terms of weight, set at 1000 for the all-items HICP, services is the largest component, accounting for around 42.3 % of individual consumption expenditure in the euro area. It is followed by non-energy industrial goods with around 27.4 %.

Food, alcohol & tobacco and energy account for 19.4 % and 11.0 %, respectively. Together, they comprise less than one third of euro area expenditure, but they can have significant impacts on the headline inflation as their levels tend to fluctuate significantly more than the other components.

The breakdown of the HICP into four main components does not follow the standard COICOP classification, but groups items from different expenditure classes into four broad product categories. For further details on the composition/sub-indices, please see Eurostat's COICOP/HICP classification.