August euro area inflation surprised on the upside, but disinflation risks remain
According to the preliminary estimate published earlier today by Eurostat1 , Euro area headline HICP inflation was 0.2%YoY in August 2015 (Figure 1), unchanged compared to the prior month’s level, against consensus estimate for a modest decline to 0.1%YoY. In more detail, the sharp decline in oil prices that led to lower energy price inflation (-7.1%YoY in August from -5.6%YoY in July) was more than offset from higher goods and food price inflation. The increase in the latter from 0.9%YoY in July to 1.2%YoY in August was mainly driven by the volatile “unprocessed food” component, which surged to 2.3%YoY from 1.4%YoY in the previous month.
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GLOBAL FOCUS NOTE_AUGUST 31_EA HICP
