Annual inflation rate dropped in May to 1.4 pct in the euro area and to 1.6 pct in the European Union, from 1.9 pct and 2 pct, respectively in April, and Ireland, Romania, Denmark and the Netherlands have recorded the lowest annual inflation rates in the EU, show the data released on Friday by the European Office for Statistics (Eurostat).
According to these estimates, the euro area inflation is moving away from the target of the Central European Bank, that intends to maintain price increases near 2 pct, a level considered beneficial for economic activity.
The highest annual inflation rates were registered last month in Estonia (3.5 pct), Lithuania (3.2 pct) and the UK (2.9 pct) and the lowest in Ireland (0.0 pct), Romania (0.5 pct), Denmark and the Netherlands (both by 0.7 pct). As against April 2017, the annual inflation decreased in 24 states (including Romania), grew in three countries and leveled off in one state.
In the euro area’s case, in May, the most significant impact on annual price growth was that of transportation fuels (0.19 percentage points), heating fuels (0.06 percentage points) and holiday packages (0.07 percentage points). On the other hand, the highest impact on inflation came from the telecommunications sector (minus 0.10 percentage points) and garments sector (minus 0.06 percentage points).