Eurozone inflation has dropped more than expected, reaching its lowest level since the Russian invasion of Ukraine over a year ago. Annual consumer prices in the 20-country bloc rose by 6.1% in the year to May, down from 7% in April, data from the EU statistics agency Eurostat shows, and fell below market’s forecast of 6.3%.

Core inflation, which excludes energy and food prices, fell from 5.6% in April to 5.3% in May, dropped more than expected.

Energy prices in the Eurozone fell by 1.7% YoY in May, following a 2.4% increase in the previous month. Services inflation decreased from 5.2% to 5%, while goods inflation eased from 6.2% to 5.8%.

Price pressures also cooled across all product categories, which is first time it happened in 18 months.

HICP inflation decreased in 18 of the 20 Eurozone member countries in May, Eurostat data shows, with only the Netherlands experiencing a slight increase and Malta’s rate remaining at 6.4% in May.

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