Eurozone Inflation Drops to Lowest Level
(MENAFN) The annual consumer inflation rate within the euro area stood at 1.9 percent in May, marking a decrease from 2.2 percent in the prior month.
This figure represents the lowest inflation rate since September 2024, based on official statistics released by Eurostat on Tuesday.
This inflation rate fell short of both market forecasts of 2 percent and the European Central Bank's (ECB) target for the previous month.
Energy prices played the most significant role in driving inflation down during May, experiencing a 3.6 percent annual decline.
Conversely, the most notable upward pressure on inflation came from food, alcohol, and tobacco, which increased by 3.3 percent in May.
This was followed by services, which rose 3.2 percent, and non-energy industrial goods, which went up by 0.6 percent.
The core inflation rate, which excludes the more volatile sectors of food and energy prices, climbed 2.3 percent annually in May.
This was slightly below the market expectation of 2.4 percent.
Among the member countries, Estonia reported the highest yearly inflation rate at 4.6 percent in May, with Croatia and Slovakia each recording rates of 4.3 percent.
On the other hand, the Greek Cypriot Administration experienced the lowest inflation rate at 0.4 percent, followed by France at 0.6 percent, and Ireland at 1.4 percent.
Looking at monthly changes, the consumer price index remained flat in May, a decrease from the 0.6 percent increase observed in April.
The eurozone, also referred to as the euro area or EA20, comprises member states that have adopted the European Union's single currency, the euro.
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