Description
The Harmonised Index of Consumer Prices (HICP) for the Euro Area is published by Eurostat. This index measures the price changes of a basket of goods and services across all Euro Area member countries, serving as a key indicator for assessing consumer price movements in the Euro Area. It is also a critical reference for the European Central Bank (ECB) when setting its medium-term inflation target of 2%.
An increase in the HICP typically indicates rising prices and heightened inflationary pressures, which could erode consumer purchasing power and prompt the central bank to consider adjusting interest rates. Conversely, a decrease in the HICP may signal reduced price pressures, with inflation stabilizing or declining.
This data is released monthly, providing year-over-year price changes for all goods and services within the Euro Area for the preceding month.