The final estimate of the single European region inflation in May showed that consumer prices plunged 0.1% on a yearly pace in May, having slowed its pace of decrease after April's steep drop of 0.2%. Meanwhile, this was the second consecutive decline in prices. From April to May period, the CPI, in turn, added at a pace of 0.4%, quicker than the 0.3% forecasted. The final data was in line with flash estimate released on May 31. The core CPI data was at an annualized growth rate of 0.8%, hire compared to the April reading of 0.7%. On a monthly pace, core CPI added 0.2% versus the 0% increase in April. In the meantime, the EU's statistics agency highlighted that restaurants, rents and tobacco prices push inflation higher while fuel, heating oil and gas, in contrast, had the negative impact.
The negative interest rate within the Euro zone region has failed to preserve hopes of inflation, despite President Mario Draghi statements that he and other senior bank officials are convinced that the measures are working. It is worth to point out, that inflation has remained in negative territory during the first half of 2015, but after rising in the second half of the year, it has weakened again in 2016.
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