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Energy boosts Sept euro zone prices, Aug trade in deficit

Published 10/15/2010, 05:04 AM
Updated 10/15/2010, 05:08 AM
NYF
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BRUSSELS, Oct 15 (Reuters) - More expensive fuel boosted euro zone consumer prices as expected in September, data showed on Friday, but core inflation remained subdued, showing the economic recovery did not yet boost inflationary pressures.

Separately, data showed the 16 countries using the euro swung to an external trade deficit in August from a surplus in July as both exports and imports rose, but imports marginally more so.

The European Union's statistics office Eurostat said consumer inflation in the euro zone was 0.2 percent month-on-month, and confirmed its earlier estimate that year-on-year prices grew 1.8 percent.

This is right on the European Central Bank's price stability target of below, but close to 2 percent over the medium term.

For full data see: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-15102010-AP/EN/2-15102010-AP-EN.PDF

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/6-15102010-BP/EN/6-15102010-BP-EN.PDF

The price growth was mainly a result of a 7.7 percent annual jump in energy prices, with fuels for transport contributing 0.4 percentage points of the total 1.8 percent annual rise and heating oil adding another 0.16 percentage point.

Without the volatile energy and unprocessed food prices, in what the ECB calls core inflation, prices grew only 1.0 percent year-on-year, the same as in August and July.

Eurostat also said that the euro zone's external trade balance in August swung to a 4.3 billion euro deficit from a downward-revised 6.2 billion surplus in July.

Year-on-year, unadjusted exports surged 31 percent in August while imports jumped 32 percent, Eurostat said.

Adjusted for seasonal swings, exports grew 1 percent month-on-month in August and imports rose 1.8 percent and all of the euro zone's top four economies -- Germany, France, Italy and Spain recorded a deterioration of their adjusted trade balances.

(Reporting by Jan Strupczewski, editing by Rex Merrifield)

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