Eurozone Preliminary CPI misses estimates with 0.1% YoY in May, EUR/USD keeps highs
According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at +0.1% in May, meeting expectations of +0.2% and +0.3% previous.
The headlines inflation hit the lowest since June 2016, as the coronavirus pandemic imposed lockdown reduced fuel and energy demand.
Meanwhile, the core figures steadied at +0.9% in the reported month when compared to +0.8% expectations and +0.9% previous.
Key details (via Eurostat):
“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in May (3.3%, compared with 3.6% in April), followed by services (1.3%, compared with 1.2% in April), non-energy industrial goods (0.2%, compared with 0.3% in April) and energy (-12.0%, compared with -9.7% in April)”
The Eurozone inflation report comes a day after the German Prelim CPI data was released, which showed that the German consumer price inflation accelerated by 0.5% in May and moved further away from the European Central Bank’s (ECB) rate target of just under 2% for the Eurozone as a whole.
FX implications
The mixed Eurozone inflation figures failed to deter the EUR bulls, as EUR/USD clinches fresh two-month highs at 1.1117 on the data release.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
