Euro zone May inflation confirmed at 6.1%

June 17, 2023

Euro zone consumer inflation sharply decelerated in May, the European Union’s statistics office confirmed today, with the core price growth measure, watched closely by the central bank, also slowing.

Eurostat confirmed its earlier estimates that consumer inflation in the 20 countries did not change at all month-on-month in May resulting in a 6.1% rise year-on-year, down from 7.0% year-on-year in April.

The contribution from energy prices, long the main driving force of inflation, was negative in May at 0.09 points and the main driver became the cost of food, alcohol and tobacco which added 2.54 points to the final figure.

The second biggest contributor was the rising prices of services, adding 2.15 points, with industrial goods adding another 1.51 points.

The European Central Bank wants to keep inflation at 2 percent over the medium term and has been raising interest rates quickly since the middle of last year to curb inflation.

The ECB raised interest rates again on Thursday to a 22-year high of 3.50% and said it would move again in July, continuing what has been the fastest pace of monetary tightening in the bank’s quarter century existence.

Article Source – Euro zone May inflation confirmed at 6.1% – RTE

Copyright and Related Rights Act, 2000

Related News

Irish prices second highest in EU last year

Irish prices second highest in EU last year

Prices paid by Irish consumers were the second highest in the EU last year, according to new official data. Irish prices were 42% higher than the EU average, according to Eurostat, just behind the 43% recorded in Denmark. Lowest price levels were registered in...

Increased labour needed to drive construction output

Increased labour needed to drive construction output

An increase in labour capacity in the construction sector may be needed if the number of houses that work has begun on this year are to be delivered. That is according to Banking and Payments Federation Ireland (BPFI) which says that between January and April, 30,138...