By Francisco Miñana
Date: Thursday 14 Jun 2012
The Eurozone's final reading for its consumer price index (CPI) for May showed a slight fall in May.
The monthly change came in at -0.1% while the annual gain was confirmed at 2.4% annually, in line with the market consensus estimate. In April, the index had risen 0.5% to give an annual increase of 2.6%.
Core CPI, which includes the more volatile fresh food and energy prices, came in at 1.6% annually as expected.
Looking at the main price components, we see that the highest annual rates were for alcohol and tobacco (4.7%), housing (4.0%), and transportation (3.7%). The lowest annual rates were for communications (-3.3%), education (0.7%), and leisure & culture (1.3%).
The lowest inflation rates were in Greece (0.9%), Ireland (1.9%), and Austria (2.3%). The highest were in Malta and Cyprus (3.7%) and Slovakia (3.4%).
The rates for the four largest economies were 2.2% for Germany, 2.3% for France, 3.5% for Italy, and 1.9% for Spain.
This data shows that inflation is falling throughout the Eurozone after being anchored at 2.7% for four months. Falling demand should take the CPI towards the 2% target set by the European Central Bank.
The data is in line with estimates and should have a null effect on the euro, equities, and bonds.
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