The inflation rate in the euro area has fallen for the second time in a row. A turnaround in interest rates is still not in sight.
The inflationary pressure in the euro zone continues to ease: In May, consumer prices are expected to have risen by only 6.1 percent compared to the previous year, according to the European statistics office Eurostat. The rate was lower than experts had expected, who had predicted 6.3 percent inflation. In April of this year, the inflation rate was 7.0 percent, after 6.9 percent in March and 8.5 percent in February.
Energy prices provided the most relief: They fell by an estimated 1.7 percent compared to the same period last year. Food, alcohol and tobacco, on the other hand, remained significantly more expensive. The inflation rate in these areas was 12.5 percent in May, and in April 2023 it was even 13.5 percent. The core inflation rate – that is, the inflation rate excluding energy, food, alcohol and tobacco – meanwhile reached a value of 5.3 percent after a value of 5.6 percent in the previous month. Non-energy industrial goods rose 5.8 percent and services rose 5.0 percent compared to the same period last year.