21/08/2019 (Agence Europe) – Euro area annual inflation was 1.0% in July, down from 1.3% in June, and 1.4% in July in the European Union, down from 1.6% in June, according to data released on Monday 19 August by the EU's statistical office (Eurostat). The lowest annual rates were observed in Portugal (-0.7%), Cyprus (0.1%) and Italy (0.3%). The highest annual rates were recorded in Romania (4.1%), Hungary (3.3%), Latvia and Slovakia (3.0%). They amounted to 1.1% in Germany and 1.3% in France. The largest contributions to annual inflation in the euro area come from services (+0.53 percentage points) and food, alcohol & tobacco (+0.37 pp). At the end of July, the ECB decided to prepare further accommodative monetary policy measures to combat persistent low inflation (see EUROPE 12304/1). (MB)