Eurozone Inflation Rate Confirmed at 1.9%



Annual inflation in the Euro Area went up to 1.9 percent in May of 2018 from an upwardly revised 1.3 percent in April, matching the preliminary estimate. It is the highest inflation rate since April of 2017, mainly due to a rise in oil prices.

The highest upward contribution to inflation rate came from services (+0.72 percentage points), followed by energy (+0.58 percentage points), food, alcohol & tobacco (+0.50 percentage points) and non-energy industrial goods (+0.08 percentage points).

Prices of energy (6.1 percent compared to 2.6 percent in April) recorded the highest increase, followed by food, alcohol and tobacco (2.5 percent compared to 2.4 percent), services (1.6 percent compared to 1 percent) and non-energy industrial goods (0.3 percent, the same as in April).

Among Eurozone's largest economies, the highest annual rate was registered in France (2.3 percent), Germany (2.2 percent), Spain (2.1 percent) and Italy (1 percent).

Annual core inflation, which excludes volatile prices of energy, food, alcohol and tobacco and at which the ECB looks in its policy decisions, was confirmed at 1.1 percent in May, higher than an upwardly revised 0.8 percent in April. It was the lowest core inflation rate since September 2017.

On a monthly basis, consumer prices rose 0.5 percent, in line with market expectations.


Eurozone Inflation Rate Confirmed at 1.9%


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
6/15/2018 9:22:32 AM