Eurozone May Inflation Rate Confirmed at Over 1-Year Low

The annual inflation rate in the Euro Area fell to 1.2 percent in May 2019 from 1.7 percent in the previous month and matching a preliminary estimate and market expectations. It is the lowest inflation rate since April last year, amid a slowdown in cost of energy and services.

Prices eased for energy (3.8 percent from 5.3 percent in April); and services (1.0 percent from 1.9 percent). On the other hand, inflation was steady for food, alcohol & tobacco (at 1.5 percent, the same as in April), of which processed food, alcohol & tobacco (1.9 percent from 1.7 percent) while unprocessed food (0.4 percent from 0.8 percent). In addition, cost of non-energy industrial goods rose 0.3 percent, faster than a 0.2 percent gain in April. 

Among Eurozone's largest economies, the highest annual rate was recorded in Germany (1.3 percent), followed by France (1.1 percent), Spain (0.9 percent) and Italy (0.9 percent).

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

On a monthly basis, consumer prices went up 0.1 percent, easing from a 0.7 percent rise in April, matching consensus, driven by services (-0.1 percent), non-energy industrial goods (0.1 percent), food, alcohol & tobacco (0.4 percent) and energy (0.9 percent).

Eurozone May Inflation Rate Confirmed at Over 1-Year Low

Eurostat | Stefanie Moya |
6/18/2019 9:14:30 AM