Inflation up in March, annual rate unchanged

In March, the annual rate of inflation as measured by the Harmonised Index of Consumer Prices remained unchanged from February 2017 at a rate of 1.2%.

Harmonised Index of Consumer Prices (HICP): March 2017

On a monthly basis, the rate of inflation rose to 0.9%, from 0.4% registered in February.

The largest upward impacts on annual inflation were registered in the Food and Non-alcoholic Beverages Index (0.62 percentage points), the Furniture, Household Equipment and Routine Maintenance of the House Index (0.28 percentage points) and the Restaurants and Hotels Index (0.22 percentage points).

These were mainly due to higher prices of vegetables, home furniture and accommodation services respectively.

The Recreation and Culture Index (0.11 percentage points), the Communication Index (0.11 percentage points) and the Clothing and Footwear Index (0.07 percentage points) registered the largest downward impacts on annual inflation, mainly reflecting lower prices for package holidays, mobile phones and garments respectively.

The twelve-month moving average rate for March stood at a rate of 1.0%, similarly to the two preceding months.

In the meantime, according to Eurostat figures published yesterday, Euro area annual inflation was 1.5% in March 2017, down from 2.0% in February. In March 2016 the rate was 0.0%. European Union annual inflation was 1.6% in March 2017, down from 2.0% in February. A year earlier the rate was 0.0%.

The lowest annual rates were registered in Romania (0.4%), Ireland and the Netherlands (both 0.6%). The highest annual rates were recorded in Latvia (3.3%), Lithuania (3.2%) and Estonia (3.0%). Compared with February 2017, annual inflation fell in seventeen Member States, remained stable in six and rose in five.