Euro Area Annual inflation Rises to 2.2%


Euro area annual inflation was 2.2% in December 2010, up from 1.9% in November. A year earlier the rate was 0.9%. Monthly inflation was 0.6% in December 2010.

EU annual inflation was 2.6% in December 2010, up from 2.3% in November. A year earlier the rate was 1.5%. Monthly inflation was 0.6% in December 2010.

Inflation in the EU Member States

In December 2010, the lowest annual rates were observed in Slovakia (1.3%), the Netherlands (1.8%), Germany and Cyprus (both 1.9%), and the highest in Romania (7.9%), Estonia (5.4%) and Greece (5.2%). Compared with November 2010, annual inflation rose in all twenty-five Member States for which data are available.

The lowest 12-month averages up to December 2010 were registered in Latvia (-1.2%), Slovakia (0.7%) and the Netherlands (0.9%), and the highest in Romania (6.1%), Greece and Hungary (both 4.7%).

Euro area

The main components with the highest annual rates in December 2010 were transport (5.2%), housing (3.8%) and alcohol & tobacco (3.6%), while the lowest annual rates were observed for communications (-0.7%) and recreation & culture (-0.1%). Concerning the detailed sub-indices, fuels for transport (+0.58 percentage points) and heating oil (+0.19) had the largest upward impacts on the headline rate, while telecommunications (-0.10) and garments (-0.09) had the biggest downward impacts.

The main components with the highest monthly rates were recreation & culture (1.9%), transport (1.4%) and hotels & restaurants (1.0%), while the lowest were clothing (-0.8%), health, communications and education (all 0.0%). In particular, package holidays (+0.18 percentage points) and fuels for transport (+0.15) had the largest upward impacts, while garments (-0.08) had the biggest downward impact.


TradingEconomics.com, Eurostat
1/14/2011 12:58:23 PM