BRUSSELS, June 1 (Xinhua) -- Annual inflation in the eurozone slowed down to 6.1 percent in May from 7 percent in April, Eurostat, the statistical office of the European Union (EU), said in a flash estimate on Thursday.
In recent months, the biggest inflation drivers were food, alcohol and tobacco, whose prices increased by 12.5 percent year-on-year in May (13.5 percent in April).
The annual inflation rate for non-energy industrial goods is expected to stand at 5.8 percent in May, compared with 6.2 percent in April.
Services prices increased by 5 percent in May year-on-year (5.2 percent in April).
The annual rate of energy price inflation continued to decrease (-1.7 percent in May and -2.4 percent in April).
The EU member states with the highest yearly inflation rates in May included Latvia and Slovakia (12.3 percent for both) and Estonia and Lithuania (11.2 percent and 10.7 percent, respectively).
The annual inflation rates were the lowest in Luxembourg, Belgium and Spain (2 percent, 2.7 percent and 2.9 percent, respectively).
The downward trend in prices is "quite a relief," Bert Colijn, senior economist for the eurozone at ING, commented.
"The key drivers of inflation have turned for the better in recent months, which is starting to be reflected in the data," he said.
Regarding food prices, Colijn noted that despite the high yearly inflation rate, monthly contributions were down sharply in April and May.
Non-energy industrial goods prices have decreased year-on-year, benefiting from falling producer prices, easing input shortages and weak demand, according to Colijn.
Energy prices, which spiked during the COVID-19 pandemic and after the outbreak of the conflict in Ukraine, are now close to pre-2021 levels, hence the negative growth, he said.
The annual inflation rate for services was also lower in May than in April, Colijn noted, which is "surprising" as the sector has been performing better.
Exceeding expectations, core inflation also fell from 5.6 percent in April to 5.3 percent in May.
However, this downward trend in inflation could be slowed down by a growing pressure for higher wages, Colijn said. ■