17 August 2001, 14:00  Euro zone July HICP down 0.1 pct from June, up 2.8 pct yr-on-yr

BRUSSELS (AFX) - Euro zone inflation, measured by the harmonised index of consumer prices, fell 0.1 pct in July from June, giving a 2.8 pct year-on-year rise, the EU's Eurostat statistical service said. In the EU, the HICP was down 0.2 pct on a monthly basis and up by 2.6 from a year earlier, Eurostat said. Economists polled earlier this week by AFX News said they expected euro zone inflation to moderate to 2.8-2.9 pct in July, with month-on-month inflation seen falling by 0.1 pct. In June, euro zone prices rose 0.1 pct on a monthly basis, and 3.0 pct on an annual basis. In July, euro zone prices, excluding energy, rose 0.1 pct on a monthly basis, and 2.8 on an annual basis, while excluding energy, food, alcohol and tobacco, the rises were 0.1 and 2.0, Eurostat said. Other items that rose sharply from June were hotels and restaurant prices, up 1.1 pct, and recreation and culture, up 1.0, it said. The fallers included clothing, down 2.7 pct, and transport, down 0.7 pct, it said. Among euro zone countries, the sharpest monthly falls were seen in Belgium and Luxembourg, both down 1.3 pct, and Finland, down 0.8 pct. In the EU, inflation fell in the UK, down 0.7 pct, Sweden, down 0.6 pct, and Denmark, down 0.4 pct, it said. Rises were seen in Spain and Portugal, both up 0.2 pct, and Italy, up 0.1 pct, it said.

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