Final May inflation data matches preliminary estimates, with core CPI accelerating above forecasts, signaling persistent price pressures.
Eurozone May consumer prices rose 3.2% year-over-year, unchanged from the preliminary print and above April’s 3.0% gain. Core inflation, excluding energy and food, climbed to 2.6%, up from 2.5% in the flash estimate and April’s 2.2% reading, exceeding expectations.
The data reinforces concerns over sticky inflation, complicating the European Central Bank’s policy path. Markets had anticipated a slight downward revision to core CPI, but the final figure suggests underlying price pressures remain elevated.
Traders are now pricing in a more cautious ECB stance, with rate cut bets moderating amid persistent inflation signals.