Harmonized indices of consumer prices August 2010

Euro area annual inflation was 1.6% in August 2010, down from 1.7% in July EU annual inflation was 2% in August 2010, down from 2.1% in july.

An annual rate measures the price change between the current month and the same month of the previous year. This measure is responsive to recent changes in price levels but can be influenced by one-off effects in either month. A 12-month average rate overcomes this volatility by comparing average Harmonized Indices of Consumer Prices (HICPs) in the latest 12 months to the average of the previous 12 months. This measure is less sensitive to transient changes in prices.

News source: Eurostat link: publication