Eurozone Kerninflation

The annual core inflation rate in the Euro Area, which excludes prices for energy, food, alcohol and tobacco, fell to 2.3% in May 2025 from 2.7% in the previous month, aligned with preliminary estimates and below the initial market expectations of 2.5%. While remaining above the 2% target, it was the lowest rate since October of 2021, strengthening calls by dovish Governing Council members of the European Central Bank to loosen monetary policy and attend to growth concerns.