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MNI: EUROZONE DATA: Flash HICP (May 2019)............>

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MNI: EUROZONE DATA: Flash HICP (May 2019)
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- EZ inflation cooled by more than markets expected in May...
- ... with a flash estimate showing the annual HICP rate dropping to 1.2% from
1.7% in Apr
- While energy inflation moderated (to 3.8% from 5.3% in Apr) and weighed on the
headline rate...
- ... a notable 0.8pp drop in services inflation (related to the timing of
Easter) to 1.1% 
- ... triggered a significant decline in the core rate too, by 0.5pp to 0.8% y/y
- With oil prices projected to decline this year, energy inflation appears set
to drag the headline rate further down over the coming months
- Meanwhile, soft demand and lower inflation expectations should continue to
weigh on firms' ability to price through higher wages to consumers
- ... thus weighing on core dynamics

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