Euro Area Inflation Rate Slows to 0.5%


Euro Area annual inflation is expected to ease to 0.5 percent in May of 2014, from 0.7 percent in April. Energy prices showed no decline for the first time in five months, which was not enough to offset a slowdown in cost of food and services.

Flash estimates showed services is expected to have the highest annual rate in May (1.1 percent, compared with 1.6 percent in April), followed by food, alcohol & tobacco (0.1 percent compared with 0.7 percent in April), non-energy industrial goods (0.0 percent, compared with 0.1 percent in April) and energy (0.0 percent, compared with -1.2 percent in April.

Core inflation rate, which strips out prices of food, energy, alcohol and tobacco is expected to accelerate to slow to 0.7 percent, from 1 percent in April.

Euro Area Inflation Rate Slows to 0.5%


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
6/3/2014 10:23:00 AM