Euro area HICP inflation was confirmed at 0.0% MoM and slowed to 1.9% YoY in May, down from 2.2% YoY in April.

• Core inflation was also confirmed at 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.
• The disinflation in May came from the services component which contributed 1.47 ppts, down from 1.80 ppts in April. This is the smallest contribution from services since March 2022.