Inflation in the euro area

Data from April 2016 – extracted on 18 May. Next planned article update: 31 May 2016.

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

Table 1: Euro area annual inflation and its main components (%), 2016, April 2015 and November 2015 - April 2016
Source: Eurostat (prc_hicp_manr)
Figure 1: Euro area annual inflation and its main components (%), January 2006 - April 2016
Source: Eurostat (prc_hicp_manr)
Figure 2: Euro area annual inflation and its main components (%), May 2014 - April 2016
Source: Eurostat (prc_hicp_manr)
Figure 3: Weights of the main components of the euro area HICP (2016)
Source: Eurostat (prc_hicp_inw)
Table 2: Relative weights of the HICP main components (%) (2016)
Source: Eurostat (prc_hicp_inw)

Main statistical findings

Euro area annual inflation was -0.2 % in April 2016, down from 0.0 % in March. A year earlier the rate was 0.0 %. The flash estimate for April published on 29 April 2016 was -0.2 %. Further information on the accuracy of the flash estimates can be found in the article 'Inflation – methodology of the euro area flash estimate'.

Looking at the main components of euro area inflation, services had the highest annual rate in April (0.9 %, compared with 1.4 % in March), followed by food, alcohol & tobacco (0.8 %, stable compared with March), non-energy industrial goods (0.5 %, stable compared with March) and energy (-8.7 %, stable compared with 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'.

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 44.2 % of individual consumption expenditure in the euro area. It is followed by non-energy industrial goods with around 26.6 %.

Food, alcohol & tobacco and energy account for around 19.5 % and 9.7 %, 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 main components and their relative weights for 2016 are presented in Figure 3 and Table 2 respectively.

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.

See also

Further Eurostat information

Data visualisation

Publications

Database

HICP (2015 = 100) - monthly data (index) (prc_hicp_midx)
HICP (2015 = 100) - monthly data (annual rate of change) (prc_hicp_manr)
HICP (2015 = 100) - monthly data (monthly rate of change) (prc_hicp_mmor)
HICP - Item weights (prc_hicp_inw)

Dedicated section

Methodology / Metadata