Inflation in Europe drops to 6.1%
Europe's inflation rate took a positive turn with a significant drop to 6.1%, but consumers are yet to see real relief in what they pay for food and other necessities, Euronews reports.
The annual figure in May eased from 7% in April for the 20 countries that use the euro currency, the European Union’s statistical agency Eurostat said Thursday.
Inflation in Germany, France and Italy - the three largest economies to use the currency - fell by 6.1%, 5.1% and 7.6% respectively.
It was a welcome sign that the explosion in price increases – which peaked in record double digits last October – is heading in the right direction.
But economists warned that it will be many months before disgruntled consumers see more normal levels of inflation reflected on price tags in shops.
Food prices in the eurozone rose by a painful 12.5% in May from a year earlier but still eased from the 13.5% increase recorded in April.
Key to the lower overall inflation figure was energy prices, which fell 1.7% from a year ago following an increase of 2.4% a month ago.
Core inflation, which excludes volatile food and energy, fell to 5.3% from 5.6% in April. That figure is seen as the better indication of price pressures in the economy from demand for goods and higher wages.
It's high enough that the European Central Bank is expected to approve another interest rate increase at its 15 June meeting.