FX.co ★ Eurozone Inflation Confirmed at 8-Month Low

In May 2025, Eurozone consumer price inflation was confirmed at 1.9% year-on-year, a decrease from 2.2% in April, marking the first instance of it falling below the European Central Bank's 2.0% target since September 2024. This reduction was primarily attributed to a notable decline in services inflation, which dropped to 3.2% from 4.0% in April, reaching its lowest since March 2022. Energy prices saw a continued reduction, decreasing by 3.6% year-on-year, while inflation for non-energy industrial goods remained steady at 0.6%. Conversely, the prices for food, alcohol, and tobacco accelerated, rising by 3.2%, up from 3.0% in the previous month. Additionally, core inflation, which excludes food and energy costs, eased to 2.3%, marking its lowest level since January 2022.