According to preliminary data for May, consumer prices fell 0.1% over the previous month, which contrasted the 0.2% increase recorded in the month prior. The decrease was driven by lower prices for transport as well as for communication. Annual inflation inched down from 0.6% in April to 0.5% in May, which slightly undershot the 0.6% the market had expected.
Core consumer prices, which exclude more volatile categories such as unprocessed food and energy, fell 0.2% over the previous month in May, which contrasted the 0.4% increase tallied in April. Annual core inflation inched down from 1.1% in April to a record low of 0.8% in May. Finally, annual HICP inflation averaged 0.8% in May, which mirrored April’s figure.FocusEconomics Consensus Forecast panelists expect inflation to average 0.7% in 2014, which is down 0.1 percentage points from the previous month’s projection. For 2015, panelists expect inflation to average 1.1%.