| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | 0.4% | 0.4% to 0.5% | 0.4% | 0.4% |
| Year over Year | 0.9% | 0.8% to 0.9% | 0.9% | 0.9% |
| HICP - M/M | 0.5% | 0.5% to 0.5% | 0.5% | 0.5% |
| HICP - Y/Y | 0.8% | 0.8% to 0.8% | 0.8% | 0.8% |
Highlights
Consumer prices rose 0.4 percent in August from July, led by higher prices for manufactured products and services. On a seasonally-adjusted basis, prices were unchanged in August, falling from a 0.2 percent increase in July. Compared to August of last year, prices were up 0.9 percent. Core inflation was unchanged on the month, while increasing 1.2 percent year-on-year, slowing from 1.5 percent in July.
Prices for manufactured goods was the primary driver of the increase, having gained 1.3 percent in August, somewhat of a payback for the 2.4 percent decline in July. Clothing and footwear prices were up 5.6 percent during the reporting month after a 9.3 percent contraction in July.
Energy prices fell 0.2 percent, helping mitigate a larger increase in the monthly number. From a year ago, prices were down 6.2 percent after falling 7.2 percent in July.
The Harmonized Index of Consumer Prices (HICP) used to compare inflation across European economics increased 0.5 percent in August and was up 0.8 percent from a year ago.
Overall inflation isn’t a problem for Europe at present, which is one of the reasons the European Central Bank kept interest rates unchanged at its meeting yesterday. If anything, the risks are of the broader economy weakening. The relative absence of inflation will make it easier for the ECB to cut rates should the economy slow with stagflation not a current risk.
Market Consensus Before Announcement
The consensus looks for no revision in the final report from the flash at increases of 0.4 percent on month and 0.9 percent on year for August.