Inflation in the euroarea drops to 1.6% in December

Euro area annual inflation is expected to be 1.6% in December 2018, down from 1.9% in November 2018, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to record the highest annual rate in December (5.5%, compared with 9.1% in November), followed by food, alcohol and tobacco (1.8%, compared with 1.9% in November), services (1.3%, stable compared with November) and non-energy industrial goods (0.4%, stable compared with November).

?eanwhile n November 2018, compared with October 2018, industrial producer prices fell by 0.3% in the euro area (EA19), by 0.4% in the EU28 and by 1.2% in Cyprus. In October 2018, prices increased by 0.8% in both zones and decrease in Cyprus by 0.1%. In November 2018, compared with November 2017, industrial producer prices rose by 4.0% in the euro area, by 4.3% in the EU28 and by 6.8% in Cyprus.

Industrial producer prices in the euro area in November 2018, compared with October 2018, fell by 1.1% in the energy sector, while prices remained stable for capital goods, durable and non-durable consumer goods and increased by 0.1% for intermediate goods. Prices in total industry excluding energy remained stable. In the EU28, industrial producer prices fell by 1.8% in the energy sector, while prices remained stable for intermediate goods, capital goods and durable and non-durable consumer goods. Prices in total industry excluding energy rose by 0.1%. The largest decreases in industrial producer prices were recorded in Greece (-2.7%), the Netherlands (-1.4%), Lithuania and the United Kingdom (both -1.3%), and the highest increases in Estonia (+1.7%), Denmark (+1.2%) and Sweden (+0.8%).

Industrial producer prices in the euro area in November 2018, compared with November 2017, rose by 10.8% in the energy sector, by 2.6% for intermediate goods, by 1.2% for capital goods and durable consumer goods and by 0.2% for non-durable consumer goods. Prices in total industry excluding energy rose by 1.5%. In the EU28, industrial producer prices rose by 12.0% in the energy sector, by 3.0% for intermediate goods, by 1.4% for durable consumer goods, by 1.3% for capital goods and by 0.4% for non-durable consumer goods. Prices in total industry excluding energy rose by 1.8%. The highest increases in industrial producer prices were recorded in Belgium (+9.3%), Denmark (+9.2%) and Estonia (+8.6%), while the only decrease was observed in Ireland (-0.6%).

Source: Cyprus News Agency