Eurozone: Inflation falls in May
June 16, 2017
Complete data released by Eurostat on 16 May confirmed that harmonized inflation was 1.4% in May, down from April’s 1.9%. The result was in line with the preliminary estimate and is below the European Central Bank’s target of close to, but below 2.0%. According to Eurostat, lower prices for telecommunications, clothing and social protection had the largest downward influence on inflation, while higher prices for transport had the biggest positive impact. Annual average inflation rose from 0.9% in April to 1.0% in May, the highest result since April 2014.
Core inflation came in at 1.0% in May, above April’s 0.9%. Meanwhile, harmonized consumer prices were flat on a monthly basis, after rising 0.5% in the previous month.
Looking at the countries in the common-currency bloc, 12 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Estonia (3.5%), Lithuania (3.2%) and Latvia (2.7%) were the economies with the highest rates. On the other side of the spectrum, Ireland (0.0%) had the lowest prices pressures. Among the largest economies in the Eurozone, Spain saw the highest inflation (2.0%), followed by Italy (1.6%) and Germany (1.4%). Meanwhile, inflation was below the region’s average in France (0.9%).