Eurozone Inflation Accelerates … RTT
Eurozone Inflation Accelerates In May
Eurozone consumer prices increased as estimated in May, final data from Eurostat revealed Friday.
Inflation rose to 1.9 percent in May from revised 1.3 percent in April.
A similar high rate was last seen in April 2017.
The latest rate matched the initial estimate released on May 31. Inflation was in line with the European Central Bank’s target of ‘below, but close to 2 percent’.
Core inflation that excludes cost of energy, food, alcohol and tobacco, also increased in May, to 1.1 percent from revised 0.8 percent a month ago. Final data came in line with flash estimate.
On a monthly basis, the harmonized index of consumer prices gained 0.5 percent in May.
On Thursday, the central bank announced its plan to start exiting its massive quantitative easing by the end of this year.
The ECB raised its inflation outlook for both this year and next was raised to 1.7 percent from 1.4 percent, mainly due to higher oil prices. The forecast for 2020 was retained at 1.7 percent.
Another report from Eurostat showed that hourly labor cost increased 2 percent annually in the first quarter, after rising 1.4 percent in the fourth quarter.
The cost of wages and salaries per hour worked grew by 1.8 percent and the non-wage component by 2.6 percent.
by RTTNews Staff Writer