Euro area annual inflation up to 0.4%

BRUSSELS,- The Euro area’s annual inflation is expected to reach 0.4 percent in September 2016, up from 0.2 percent in August 2016, according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of Euro area inflation, services are expected to have the highest annual rate in September (1.2 percent, compared with 1.1 percent in August), followed by food, alcohol and tobacco (0.7 percent, compared with 1.3 percent in August), non-energy industrial goods (0.3 percent, stable compared with August) and energy (-3.0 percent, compared with -5.6 percent in August).

With regards to unemployment, Eurostat said the Euro area (EA19) seasonally-adjusted unemployment rate was 10.1 percent in August 2016, which was stable compared to July 2016, and down from 10.7 percent in August 2015.

”This remains the lowest rate recorded in the Euro area since July 2011,” it noted.

The EU28 unemployment rate was 8.6 percent in August 2016, stable compared to July 2016 and down from 9.3 percent in August 2015. This remains the lowest rate recorded in the EU28 since March 2009.

Eurostat estimates that 20.973 million men and women in the EU28, of whom 16.326 million were in the Euro area, were unemployed in August 2016. Compared with July 2016, the number of persons unemployed decreased by 40 000 in the EU28, while it increased by 8 000 in the Euro area. Compared with August 2015, unemployment fell by 1.587 million in the EU28, and by 875, 000 in the Euro area.

Among Member States, the lowest unemployment rates in August 2016 were recorded in the Czech Republic (3.9 percent) and Germany (4.2 percent). The highest unemployment rates were observed in Greece (23.4 percent in June 2016) and Spain (19.5 percent).

In August 2016, 4.199 million young persons (under 25) were unemployed in the EU28, of whom 2.927 million were in the Euro area. Compared with August 2015, youth unemployment decreased by 381,000 in the EU28 and by 209,000 in the Euro area.

Source: Emirates News Agency