Eurozone annual inflation is
expected to be 0.5% in May 2014, down from 0.7% in April, according to a flash
estimate from Eurostat, the statistics office of the European Union.
Looking at the main components of
Eurozone inflation, services is expected to have the highest annual rate in May
(1.1%, compared with 1.6% in April), followed by food, alcohol & tobacco (0.1%,
compared with 0.7% in April), non-energy industrial goods (0.0%, compared with
0.1% in April) and energy (0.0%, compared with -1.2% in April).
Germany's annual inflation rate
almost halved in May, raising concerns that the Eurozone is facing a prolonged
stretch of excessively low consumer-price growth that could derail its fragile
Using the EU's harmonised rate,
Germany's inflation rate fell to 0.6% in May from 1.1% in April.
The official ECB inflation target is
"below but close to 2%" and this week the European Central Bank is expected to
announce new measures to seek to head off deflation fears by triggering higher
inflation and a lower euro rate against the US dollar.
The Eurozone consists of Belgium,
Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia,
Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and