Eurozone May inflation falls to lowest 2023 level as energy costs decrease

LONDON (ICIS)–Eurozone inflation fell in May to the lowest monthly rate this year as price rises eased across all sectors and energy costs decreased.

Annual inflation in May was 6.1%, down from 7% in April, according to official statistics agency Eurostat on Thursday.

The biggest inflation driver was food, alcohol & tobacco at 12.5%, though this was down from 13.5% in the previous month.

Inflation in non-energy industrial goods and services also eased off, while energy inflation fell by 1.7% compared to a rise of 2.4% in April, the agency said in its initial flash estimate which is subject to revision.

The European Central Bank has been raising interest rates in a bid to tackle high inflation across the eurozone.