Euro area HICP inflation was 0.0% MoM and slowed to 1.9% YoY in May, down from 2.2% YoY in April and below expectations of a 2.0% YoY increase.

• Core inflation was 0.0% MoM and 2.3% YoY, down from 2.7% YoY and below expectations of a 2.5% YoY increase.
• Annual core inflation is the lowest since January 2022, and the monthly rate of 0.0% MoM is the lowest since May 2020.
• Food inflation increased 0.5% MoM and 3.3% YoY, the highest since February 2024.
• Energy inflation was -3.6% YoY and -1.2% MoM, continuing to weigh on the headline figure.
• Services inflation cooled significantly, falling to 3.2% YoY in May from 4.0% in April and posted a -0.1% MoM decline. The annual rate is the lowest since March 2022.
• Non-energy industrial goods inflation remained steady at 0.6% YoY, up just 0.1% MoM.