Inflation falls in May

Latest reading: Inflation dropped to 1.9% in May, from April’s 2.1%, marking the weakest inflation rate since November 2024, but remaining close to the Central Bank’s 2.0% target. Looking at the details of the release, prices for transportation declined at a sharper rate, while growth in prices for food and non-alcoholic beverages moderated. Moreover, costs for recreation and culture rose at a more subdued pace. Meanwhile, prices for housing and utilities increased at a faster pace. The trend was unchanged, with annual average inflation remaining at April's 2.0% in May. Meanwhile, core inflation edged down to 2.0% in May from April’s 2.1%. Lastly, consumer prices dropped 0.09% over the previous month in May, swinging from April's 0.08% rise. May's result marked the sharpest fall in prices since November 2024.

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