Euro Area Stuck in Deflation for 4th Month

Consumer prices in the Eurozone are expected to fall 0.1 percent year-on-year in May of 2016, following a 0.2 percent drop in April and in line with market expectations. Consumer prices failed to grow for the fourth straight month, preliminary figures showed. The inflation has been running well below the ECB’s target of just under 2 percent for the past three years.

Services is expected to have the highest annual rate (1.0 percent compared with 0.9 percent in April), followed by food, alcohol & tobacco (0.8 percent, stable compared with April) and nonenergy industrial goods (0.5 percent, stable compared with April).

In contrast, energy prices are expected to fall at a slightly slower 8.1 percent compared with an 8.7 percent drop in April.

Annual core inflation which excludes energy, food, alcohol and tobacco is expected to accelerate slightly to 0.8 percent from 0.7 percent in April. 

Euro Area Stuck in Deflation for 4th Month

Eurostat | Joana Taborda |
5/31/2016 10:20:46 AM