Eurozone inflation slumps to 0.1pc in May

BRUSSELS, May 29 — Inflation in the eurozone single currency area dropped to 0.1 per cent in May from 0.3 per cent in April, the official Eurostat agency said today.

The drop in prices comes as Europe entered its sharpest recession in EU history because of the lockdowns brought on by the Covid-19 illness.

Economic activity is down across the bloc because of the containment measures imposed by member states to contain the spread of the coronavirus epidemic.

The figure will be a key factor at a meeting of the European Central Bank next week that could decide on more economic stimulus.

In the midst of the coronavirus pandemic, energy prices in May dropped a sharp 12 per cent in the 19-country single currency bloc.

Closely watched core inflation, which strips out energy, food, and other products prone to volatile price changes, was at a low 0.9 per cent. — AFP