Euro area CPI edges past forecasts in May, core inflation drifts lower
By Alexander Bueso
Date: Tuesday 30 Jun 2020
(Sharecast News) - Price pressures in the single currency bloc edged higher last month but nearly half its members remained in deflation.
According to Eurostat, in seasonally-adjusted terms, the headline rate of consumer price inflation picked up from a year-on-year pace of 0.1% for April to 0.3% in May (consensus: 0.1%).
At the core level however, which excludes food, energy, alcohol and tobacco, CPI edged down from 0.9% to 0.8% (consensus: 0.9%).
Among the countries experiencing deflation were Estonia (-1.5%), Italy (-0.4%), Ireland (-0.7%), Greece (-1.7%), Spain (-0.3%), Cyprus (-2.5%), Latvia (-1.1%), Luxembourg (-0.4%) and Slovenia (-0.8%).
In Germany however, CPI accelerated from 0.5% to 0.8%, while in Spain deflation did ease from -0.9% to -0.3%).
As an aside, earlier on Tuesday, Spain's national statistics office confirmed that gross domestic product in the Iberian country collapsed at a historic quarter-on-quarter pace of 5.2% during the first three months of 2020.
The annual rate of increase in the prices for unprocessed food fell from 6.7% to 5.9%, while for services it slipped from 1.3% to 1.2% and for non-energy industrial goods it was unchanged at 0.2%.
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