Eurozone: Inflation jumps in May
June 16, 2017
According to complete data released by Eurostat on 15 June, harmonized inflation came in at 1.9% in May, the highest reading since April 2017 and notably up from the previous month’s 1.3%. The result matched the preliminary estimate. As a result, inflation now sits at the European Central Bank’s target rate of just under 2.0%. The acceleration in price pressures was chiefly due to a significant rise in energy prices in May.
Annual average inflation was stable at April’s 1.4% in May. Meanwhile, core inflation edged up to 1.3% from 1.1% in April. Harmonized consumer prices rose 0.5% from the previous month in May, above April’s 0.3% increase.
Among the countries in the common-currency bloc, Estonia (3.1%), Lithuania (2.9%) and Slovakia (2.7%) experienced the highest inflation. Meanwhile, Ireland (0.7%) and Greece (0.8%) recorded the lowest inflation. Regarding the largest economies in the Eurozone, inflation rose across the board in May hitting 1.8% in France, 2.2% in Germany, 1.0% in Italy and 2.1% in Spain.