Euro area inflation slows to 1.9% in May – Eurostat

By Aya El Sayed On Jun 3, 2025

Euro area inflation slowed to 1.9 per cent in May, down from 2.2 per cent in April, edging just below the European Central Bank’s (ECB) 2 per cent target, according to a flash estimate released by Eurostat on Tuesday.

Among key components, food, alcohol and tobacco saw the highest annual rate at 3.3 per cent, up from 3.0 per cent in April. Services inflation eased to 3.2 per cent from 4.0 per cent, while non-energy industrial goods remained stable at 0.6 per cent. Energy prices continued to decline, registering -3.6 per cent year-on-year.

The latest data is likely to add to pressure on the ECB to shift toward monetary easing after maintaining record-high rates to combat persistent inflation through most of 2023 and early 2024. The ECB’s next interest rate decision is scheduled for June 6.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

A European Central Bank (ECB)Consumer Prices ECB inflation target ecb interest rates energy prices Euro area economy euro zone inflation European Central Bank