Euro Area Deflation Confirmed at -0.1% in May

Consumer prices in the Eurozone edged down 0.1 percent year-on-year in May of 2016, following a 0.2 percent fall in April and matching preliminary estimates. Prices failed to grow for the fourth straight month, dragged down by energy cost, final figures showed.

The largest downward impact came energy prices that fell 8.1 percent, namely fuels for transport (-11 percent), heating oil (-23.6 percent) and gas (-6.9 percent). In contrast, upward pressure came from cost of restaurants and cafés (+1.6 percent), rents (+1 percent) and tobacco (+2.7 percent). 

The core index which excludes prices of energy, food, alcohol and tobacco increased 0.8 percent (0.7 percent in April) and excluding energy, prices also went up 0.8 percent (0.8 percent in April).

Considering the European Union, consumer prices fell 0.1 percent (after a 0.2 percent drop in April). The lowest rates were registered in Romania (-3.0 percent), Bulgaria (-2.5 percent) and Cyprus (-1.9 percent). The highest ones were recorded in Belgium (1.6 percent), Malta (1.0 percent) and Sweden (0.8 percent). 

On a monthly basis, consumer prices in the Euro Area rose 0.4 percent after being flat in April. In the EU 28, prices increased 0.3 percent. 

Euro Area Deflation Confirmed at -0.1% in May

Eurostat | Joana Taborda |
6/16/2016 10:23:54 AM