European Inflation Rate Declines in May, Reaches 1.9%
The European Union’s statistics agency, Eurostat, reported a decrease in the annual inflation rate in the euro area for May 2025, with the rate estimated to be 1.9 percent, down from 2.2 percent in April. The prices remained unchanged compared to the previous month.
The so-called core inflation, which excludes energy, food, alcohol and tobacco, stood at 2.3 percent in May, lower than the 2.7 percent recorded in the previous month. This core rate is closely monitored by the European Central Bank (ECB) in relation to its target of a two percent inflation rate.
The main components of the inflation rate in the euro area are expected to show the following annual rates in May: food, alcohol and tobacco at 3.3 percent, a slight increase from the 3.0 percent in April; services at 3.2 percent, a decrease from the 4.0 percent in April; industrial goods excluding energy at 0.6 percent, unchanged from April; and energy at -3.6 percent, also unchanged from April.
Eurostat reported the highest inflation rate in Estonia, at 4.6 percent, followed by Croatia and the Slovak Republic, both with a rate of 4.3 percent. In contrast, Cyprus recorded the lowest rate, at 0.4 percent, while Germany’s inflation rate was estimated at 2.1 percent by Eurostat.