Consumer prices provisionally rose a monthly 0.5 in August. The increase, which was broadly in line with the seasonal pattern for mid-quarter, put the annual inflation rate at 0.9 percent, a 0.2 percentage point increase versus July's final print and a 4-month high.
The flash HICP advanced a monthly 0.6 percent to stand 1.0 percent above its level a year ago, also up a couple of ticks from last time.
The monthly increase in the CPI was largely attributable to a seasonal rebound in manufactured goods prices and some holiday related effects on services. In fact, the yearly inflation rate in manufacturing actually dipped from minus 0.4 percent to minus 0.6 percent, although it did edge a tick firmer to 1.1 percent in services. Rather, the principal boost to annual headline inflation came from energy, where the rate climbed fully 3 percentage points to 4.9 percent. Food (0.6 percent after 0.7 percent) had a minimal negative impact.
Following the increase reported in the provisional German data yesterday, today's French update further boosts the likelihood of a pick-up in inflation in the flash Eurozone report for August due later this morning. However, it still looks as if the key core rates will be little changed.