Eurozone: Inflation recedes in May
June 18, 2019
Complete data confirmed harmonized inflation came in at 1.2% in May, down from April’s 1.7% and matching the preliminary estimate. Inflation now sits further below the European Central Bank’s target rate of near, but under, 2.0%. Lower price pressures for energy and services largely drove May’s drop.
Annual average harmonized inflation was unchanged at April’s 1.8% in May. Core inflation, however, dropped to 1.0% in May, from April’s 1.4%. On a monthly basis, harmonized consumer prices rose 1.0% in May, a smaller increase then April’s 0.7%.
Among the countries in the common-currency bloc, Portugal (0.3%) and Cyprus (0.2%) recorded the lowest inflation in May. On the flipside, Latvia (3.5%) and Estonia (3.1%) experienced the highest price pressures. Regarding the largest economies in the Eurozone, inflation fell across-the-board in the largest economies.