Eurozone inflation slowed to 6.1% in May

Inflation in the Eurozone slowed down to 6.1% y/y in May 2023 – the lowest indicator since February 2022. This is evidenced by the previous Eurostat’s data. In April 2023, this indicator was 7%.

Analysts, polled by Trading Economics, on average forecast a more moderate slowdown to 6.3%.

At the same time, annual core inflation, which excludes energy and food costs, slowed to 5.3%, returning to the value of January (5.6% in April). Energy prices decreased by 1.7% compared to a 2.4% increase in April 2023.

The lowest inflation rates were recorded in Luxembourg (2.7%), Belgium (2.7%) and Spain (2.9%), the highest – in Latvia (12.3%), Slovakia (12.3%) and Estonia (11, 2%). It was 6.3% in Germany, 6% – in France, and 8.1%– in Italy.

As GMK Center reported earlier, the rates of inflation in the eurozone in April 2023, accelerated to 7% compared to 6.9% in March 2023. At the same time, annual core inflation, which excludes energy and food costs, slowed to 5.6%.

Also, in the first quarter of 2023, the GDP of the Eurozone increased by 0.1% q/q. The economy of the European Union in January-March 2023 increased by 0.3% q/q. In annual terms, the GDP of the Eurozone and the EU increased by 1.3%. France and Italy recovered from the negative indicators recorded in the last months of 2022. At the same time, the German economy is slowing down.