Statistics Explained

Inflation in the euro area

This is the stable Version.


Data from July 2024. Extracted on 31 July 2024.

Next planned article update: 20 August 2024.

Highlights

Euro area annual inflation is expected to be 2.6% in July 2024, up from 2.5% in June 2024.

Line chart with five lines showing the development of euro area annual inflation and its four main components monthly during the last two years until July 2024. The four components are: 1) food, alcohol and tobacco, 2) energy, 3) non-energy industrial goods, and 4) services.
Euro area annual inflation and its main components, July 2014 - July 2024 (estimated)
(%)
Source: Eurostat (prc_hicp_manr)

The figures presented in this article are early estimates of the Harmonised Index of Consumer Prices (HICP).

Full article

Euro area annual inflation rate and its main components

Euro area annual inflation is expected to be 2.6% in July 2024, up from 2.5% in June 2024.

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in July (4.0%, compared with 4.1% in June), followed by food, alcohol & tobacco (2.3%, compared with 2.4% in June), energy (1.3%, compared with 0.2% in June) and non-energy industrial goods (0.8%, compared with 0.7% in June).

Table on the euro area annual inflation and its main components. The ten rows show the following items: 1) all-items, 2) all-items excluding energy, 3) all-items excluding energy and unprocessed food, 4) all-items excluding energy, food, alcohol and tobacco, 5) food, alcohol and tobacco, 6) processed food, alcohol and tobacco, 7) unprocessed food, 8) energy, 9) non-energy industrial goods, and 10) services. Data is shown in eight columns: first, the item group's weight in 2024 in per mil, followed by the euro area annual inflation in the month July 2023 and finally one column per month for the six months from February 2024 to July 2024.
Table 1: Euro area annual inflation and its main components: weights for 2024 and rates for July 2023 and February-July 2024 (estimated)
(%)
Source: Eurostat (prc_hicp_inw) and (prc_hicp_manr)


Line chart with five lines showing the development of euro area annual inflation and its four main components monthly during the last ten years until July 2024. The four components are: 1) food, alcohol and tobacco, 2) energy, 3) non-energy industrial goods, and 4) services.
Figure 1: Euro area annual inflation and its main components, July 2014 - July 2024 (estimated)
(%)
Source: Eurostat (prc_hicp_manr)


Line chart with five lines showing the development of euro area annual inflation and its four main components monthly during the last two years until July 2024. The four components are: 1) food, alcohol and tobacco, 2) energy, 3) non-energy industrial goods, and 4) services.
Figure 2: Euro area annual inflation and its main components, July 2022 - July 2024 (estimated)
(%)
Source: Eurostat (prc_hicp_manr)

Main components of inflation

Each of the main components contributes in varying degrees to the headline inflation in the euro area. In terms of weights for 2024, 100% for the headline HICP, services is the largest component, accounting for around 44.9% of household final monetary consumption expenditure in the euro area. It is followed by non-energy industrial goods with around 25.7%.

Food, alcohol & tobacco and energy account for 19.5% and 9.9%, respectively. Together, they comprise less than one third of euro area expenditure, but they can have significant impacts on the headline inflation as their prices tend to fluctuate significantly more than the other components.

The weights of the main components of the euro area for 2024 are presented in Figure 3. Table 2 shows their relative weights for 2024.

Pie chart showing the weights of the four main components of the euro area HICP in 2024.
Figure 3: Weights of the main components of the euro area HICP - 2024
Source: Eurostat (prc_hicp_inw)


Table on the weights of all-items, of the four main components and of 15 of their subcomponents of the euro area HICP in 2024.
Table 2: Weights of the components of the euro area HICP, 2024
Source: Eurostat (prc_hicp_inw)


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