Eurozone inflation slowed sharply in May to its lowest level in over a year and core price growth eased below 1 percent, as estimated earlier, latest data from Eurostat confirmed on Tuesday.
Inflation slowed to 1.2 percent in May from 1.7 percent in April. The latest inflation rate was the lowest since April last year, when it was at the same level.
Core inflation, which excludes prices of energy, food, alcohol & tobacco, eased to 0.8 percent from 1.3 percent.
Both inflation figures matched their flash estimates released on June 4.
The ECB targets inflation “below, but close to 2 percent”.
Energy inflation remained the highest among main components, despite easing to 3.8 percent from 5.3 percent. Prices of food, alcohol and tobacco grew 1.5 percent, same as in April.
Services costs rose 1.1 percent year-on-year following a 1.9 percent climb in the previous month. Prices of non-energy industrial goods increased 0.3 percent after a 0.2 percent rise in April.
On a month-on-month basis, consumer prices edged up 0.1 percent in May.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Eurozone May Inflation Unrevised