Inflation in the euro area

Data from December 2016 – extracted on 18 January 2017. Next planned article update: 31 January 2017.

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, December 2015 and July - December 2016
Source: Eurostat (prc_hicp_manr)
Figure 1: Euro area annual inflation and its main components (%), January 2006 - December 2016
Source: Eurostat (prc_hicp_manr)
Figure 2: Euro area annual inflation and its main components (%), December 2014 - December 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 1.1 % in December 2016, up from 0.6 % in November 2016. A year earlier the rate was 0.2 %. The flash estimate for December, published on 4 January 2017, was 1.1 %. 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, energy had the highest annual rate in December (2.6 %, compared with -1.1 % in November), followed by services (1.3 %, compared with 1.1 % in November), food, alcohol & tobacco (1.2 %, compared with 0.7 % in November) and non-energy industrial goods (0.3 %, stable compared with November).

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