Annual harmonized inflation rose to 3.2% in August 2024

The annual inflation measured by the harmonized index of consumer prices according to the European common methodology reached the value 3.2% in August 2024, which was 0.2 percentage points higher than its value in the previous month.

Annual inflation compares the change in the price level in the observed month of a given year compared to the price level of the same month in the previous year.

The average annual rate of HICP inflation (comparing change in the average price level for the average of the harmonized consumer price indices for the last 12 months compared to the average of the previous 12 months) reached in August 2024 the value 4.5%, which represents a decrease of 0.5 percentage points compared to its value in July 2024. The average annual HICP inflation rate is an important indicator of a country’s price stability, its level is also considered as one of the four so-called Maastricht criteria that an EU Member State must meet before adopting the euro.

In August 2024, the total harmonized index of consumer prices increased by 0.3% compared to the previous month. The month-on-month increase in the index was mainly influenced by the increase in prices in the divisions: Food and non-alcoholic beverages (the total positive contribution to month-on-month inflation was +0.15 percentage points) and Transport (total positive contribution +0.08 p.p. – the increase in prices of passenger transport by road and of passenger transport by air outweighed the decrease in fuel prices). A higher positive contribution to month-on-month inflation was also recorded in the divisions: Miscellaneous goods and services (+0.04 p.p.) and Restaurants and hotels (+0.03 p.p.). On the contrary, the drop in prices and the highest negative contribution to the month-on-month inflation was achieved in the division Furnishings, household equipment and routine household maintenance (the negative contribution of the entire division was -0.03 p.p.).

The resulting summary of harmonized inflation within Europe for August 2024 can be found on 18^th September 2024 from 11 a.m. on the Eurostat website.