Eurozone consumer price inflation was confirmed at 1.9% year-on-year in May 2025, down from 2.2% in April and dipping below the European Central Bank’s 2.0% target for the first time since September 2024. The slowdown was largely driven by a sharp drop in services inflation, which fell to 3.2% from 4.0% in April, its lowest level since March 2022.
Energy prices continued to decline, down 3.6% year-on-year, while inflation for non-energy industrial goods remained unchanged at 0.6%. In contrast, prices for food, alcohol, and tobacco rose at a faster pace, increasing 3.2% compared with 3.0% the previous month. Meanwhile, core inflation, which excludes food and energy, eased to 2.3%, the lowest since January 2022.
