Eurostat, the statistical office of the European Union, released preliminary estimates just a few moments ago showing that annual inflation in the eurozone rose to 1.9% in May, down from April’s 2.2% and below expectations of 2.0%.
The largest contribution to inflation in May came from the food, alcohol, and tobacco sector, which rose at an annual rate of 3.3%, up from 3.0% in April. The services sector rose 3.2%, up from 4%. The non-energy industrial goods index remained unchanged at 0.6%, while the energy index continued to decline, falling 3.6% for the third month.
The core index, which excludes food and energy prices, rose 2.3% in May, compared to April’s 2.7%, while expectations were for a 2.4% increase.