Eurozone May Inflation Rate at Over 1-Year Low of 1.2%


The annual inflation rate in the Euro Area is expected to fall to 1.2 percent in May 2019 from 1.7 percent in the previous month and below market expectations of 1.3 percent, a preliminary estimate showed. It is the lowest inflation rate since April last year, mainly due to a slowdown in cost of energy and services.

Prices should rise at a softer pace for energy (3.8 percent from 5.3 percent in April); and services (1.1 percent from 1.9 percent). Meanwhile, cost of food, alcohol & tobacco is expected to advanced to 1.6 percent from 1.5 percent in April, boosted by processed food, alcohol & tobacco (1.9 percent from 1.7 percent) while unprocessed food is projected to eased (0.4 percent from 0.8 percent). Also, price of non-energy industrial goods should increased further (0.3 percent from 0.2 percent). 

The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is likely to slow to 0.8 percent in May from 1.3 percent in the prior month and below market forecasts of 0.9 percent.

 Eurozone May Inflation Rate at Over 1-Year Low of 1.2%


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
6/4/2019 9:14:36 AM