A report released today, showed Eurozone annual inflation was 2.7% in Last month, unchanged compared with the previous month. A year earlier the rate was 2.4%. Monthly inflation was 0.5% in Last month 2012. Malta's inflation rate is 2.3% slightly below the Eurozone average.

EU annual inflation was 3.0% in last month, up from 2.9% from the first month of the year. A year earlier the rate was 2.9%. Monthly inflation was 0.5% in Last month 2012, according to Eurostat, the statistical office of the EU.

Inflation in the European States

In the last month 2012, the lowest annual rates were recorded in Sweden (1.0%), Greece (1.7%) and Spain (1.9%), and the highest in Hungary (5.8%), Estonia and Poland (both 4.4%). Compared with first month of the 2012, annual inflation fell in nine member states, remained stable in five and rose in eleven.

The lowest 12-month averages up to last month 2012 were registered in Sweden (1.3%), Slovenia (2.1%) and Malta (2.3%), and the highest in Romania (5.1%) and Estonia (5.0%).

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The main components with the highest annual rates in last month were transport (4.6%), housing (4.4%) and alcohol and tobacco (4.1%), while the lowest annual rates were observed for communications (-3.0%), recreation and culture (0.9%) and education (1.0%).

Other sub indexes reported, showed fuels for transport (+0.38 percentage points), gas and heating oil (+0.14 each) had the largest upward impacts on the overall rate, while telecommunications (-0.19), cars (-0.09) and rents (-0.08) had the largest downward impacts. Fuel costs were the most inflated.

If energy products were removed from the equation or reduced from their high levels since January, overall inflation would have been very low. The high price of crude oil is slowly having a far reaching effect through the economy.