Eurozone Inflation Rate Slows To 5-Month Low


Consumer prices in the Euro Area are expected to increase by 1.4 percent year-on-year in May 2017, following a 1.9 percent rise in the previous month and missing market expectations of 1.5 percent gain, a flash estimate showed. It was the lowest inflation rate since December last year, as prices rose at a slower pace for energy and services.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in May (4.6 percent, compared with 7.6 percent in April), followed by food, alcohol & tobacco (1.5 percent, stable compared with April), services (1.3 percent, compared with 1.8 percent in April) and non-energy industrial goods (0.3 percent, stable compared with April).

Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, fell to 0.9 percent from 1.2 percent in April.

Eurozone Inflation Rate Slows To 5-Month Low


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
5/31/2017 9:09:56 AM