Low inflation in the euro area, 0.5% in May, down from April (-0.2%)

There’s still low inflation in EuroLand: in May, according to flash estimate from Eurostat, the annual inflation is expected at 0.5%, down from April (0.7%). According to the estimate, in the reference month the harmonised index of consumer prices will be down for almost all the entries of the euro area: -0.3% for energy (0.9% in April, 0.6% in May), -0.6% for food, alcohol and tobacco (from 0.7% to 0.1%), -0.5% for services (from 1.6% to 1.1%), -0.1% for non-energy industrial goods (from 0.1% to 0%). Energy is expected to invert the course of its deflation trend: from an annual inflation of -1.2% in April to 0% in May.