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30 Jun, 2020 11:07

Euro area CPI edges past forecasts in May, core inflation drifts lower

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FILED - 04 July 2011, Baden-Wuerttemberg, Karlsruhe: One euro coins will fall onto an EU flag. The European Union`s gross domestic product shrank 3.5 per cent in the first three months of the year, according to a first estimate from Eurostat, while eurozopicture alliance / Uli Deck/dpa - Archivo

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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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.