European inflation

European inflation, Dec 2013: Eurostat

  • Euro area annual inflation was 0.8% in December 2013, down from 0.9% in November
  • A year earlier the rate was 2.2%
  • Monthly inflation was 0.3% in December 2013
  • European Union annual inflation was 1.0% in December 2013, stable compared with November
  • A year earlier the rate was 2.3%
  • Monthly inflation was 0.3% in December 2013

Inflation down to 2%

Consumer Price Inflation, Dec 2013: ONS

  • The Consumer Prices Index (CPI) grew by 2.0% in the year to December 2013, down from 2.1% in November.
  • The largest contributions to the fall in the rate came from prices for food & non-alcoholic beverages and recreational goods & services. These were partially offset by an upward contribution from motor fuels.
  • The overall price increase for gas and electricity in December 2013 was slightly larger than the rises a year earlier resulting in a small upward contribution to inflation.
  • CPIH (includes owner occupiers’ housing costs) grew by 1.9% in the year to December 2013, unchanged from November.
  • RPIJ grew by 2.0%, also unchanged from November. RPIJ is an improved variant of the Retail Prices Index which is calculated using formulae that meet international standards

Retail sales up

Retail sales monitor: BRC

  • UK retail sales were up 0.4% on a like-for-like basis from December 2012, when they had increased 0.3% on the preceding year.
  • On a total basis, sales were up 1.8%, against a 1.5% increase in December 2012, the lowest growth of 2013
  • The 3-month average total growth was 2.2% against 2.8% for the 12-month period, confirming the recent slowdown in sales and consumer confidence

Shop prices fall

Shop price index: BRC

  • Overall shop prices reported deflation for the eighth consecutive month in December, slowing to 0.8% from 0.3% in November.
  • This is the deepest level of deflation since the series began in December 2006.
  • Food inflation slowed to 1.7% from 2.3% in November
  • Non-food reported annual deflation of 2.3% in December from 2.0% in November

European retail trade volumes

Retail trade volumes: Eurostat

  • In November 2013 compared with October 2013, the seasonally adjusted volume of retail trade rose by 1.4% in the euro area (EA17) and by 1.2% in the EU28
  • In October retail trade decreased by 0.4% and 0.5% respectively
  • In November 2013 compared with November 2012 the retail sales index increased by 1.6% in the euro area and by 2.0% in the EU28