Eurozone Consumer Price Index rises by 1.9% year-on-year in May

Consumer prices in the Eurozone rose less than expected in May, giving the European Central Bank room to cut interest rates again later this week.

The Consumer Price Index (CPI) in the Eurozone increased by 1.9% year-on-year last month, below the ECB's 2.0% target, and slowing from 2.2% in April, in line with expectations.

On a monthly basis, the reading was flat at 0.0% after a 0.6% rise the previous month.

Excluding the more volatile components such as food and fuel, the “core” inflation rate rose by 2.3% in the twelve months through May, down from 2.7% in the previous month. On a monthly basis, core price growth also held steady at 0.0%, following a 1.0% increase in April.