The euro area HICP grew by an annual rate of 0.4% in August, 0.1 pp more than the EUROSTAT flash estimate and our forecast. The rate’s monthly variation was 0.1%.
The upwards innovation was largely found in manufactured goods. The other groups presented insignificant errors.
A significat downward innovation was observed in core inflation in August, due to the behaviour of several groups, being Rents the most important.
Average inflation expectations decrease consequently, even so, remaining within the interval proposed by the FED.
The Department of Commerce revised the figures for the last few years, with an average increase of 0.1 pp for 2013 and the first few months of 2014.
The June core PCE was worse than forecast: 0.14% monthly increase versus 0.08%, with the annual rate falling from 1.52% to 1.49%.