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MNI: EUROZONE DATA: Final HICP (May 2019) Preview....>

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MNI: EUROZONE DATA: Final HICP (May 2019) Preview - 10:00 BST
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- HICP: Flash (May): 1.2% y/y; Previous (Apr): 0.7% m/m; 1.7% y/y
- Core HICP: Flash (May): 0.8% y/y; Previous (Apr): 1.3% y/y
- The flash estimate showed EZ inflation at its weakest in May since Apr 2018
- The final release is likely to confirm the flash readings
- Indeed, annual May HICP rates in Germany (1.3%), France (1.1%), Italy (0.9%) &
Spain (0.9%) were all unchanged from their flash estimates
- With energy price inflation set to slow further in the months ahead, the
headline HICP rate could fall below 1% later in the year
- Recently released data showing that EZ labour cost growth picked up in Q1 (by
0.1pp to 2.4% y/y) may offer some comfort to the ECB... 
 -...which continues to cite higher wage growth as a key driver of its
expectation for stronger core inflation ahead
- However, slower economic momentum & survey evidence of a slowdown in
employment gains, point to a levelling off in wage growth going forward

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