Euro Area Inflation Rate Confirmed At 5-Month Low

Consumer prices in the Euro Area increased 1.4 percent year-on-year in May of 2017, slowing from a 1.9 percent rise in April and matching preliminary estimates. It is the lowest inflation rate so far this year as cost of fuel and heating oil slowed and prices of telecommunication fell further, final figures showed.
Eurostat | Joana Taborda | 6/16/2017 1:09:51 PM
The largest downward impacts came from telecommunication (prices down 1.7 percent following a 1.4 percent drop in April); social protection (-0.9 percent); garments (prices edged up 0.2 percent, the same as in April). In addition, prices rose less for fuels for transport (5.9 percent compared to 11.2 percent in April) and heating oil (10.3 percent from 21.2 percent). Prices went up 4.5 percent for accomodation services. 

The lowest annual rates were registered in Ireland (0 percent from 0.7 percent in April), the Netherlands (0.7 percent from 1.4 percent), France (0.9 percent from 1.4 percent), Finland (0.9 percent from 1 percent) and Cypus (0.9 percent from 2.1 percent). The highest annual rates were seen in Estonia (3.5 percent from 3.6 percent), Lithuania (3.2 percent from 3.5 percent) and Latvia (2.7 percent from 3.3 percent). German inflation was 1.4 percent (2 percent in April) and in Italy it was 1.6 percent (2 percent in April).

Excluding prices of processed food, alcohol and tobacco, the inflation declined to 0.9 percent from 1.2 percent in April and excluding energy only it fell to 1.1 percent from 1.3 percent.

Considering the whole European Union, the inflation rate eased to 1.6 percent from 2 percent in April. 

On a monthly basis, consumer prices declined 0.1 percent, the first fall in four months. 

 Euro Area Inflation Rate Confirmed At 5-Month Low