Consumer prices in the euro zone stagnated in May as inflation fell to a record low of zero in the face of a recession, official EU data showed today.
The Eurostat figures, which confirmed a first estimate, left 12-month euro zone inflation at the lowest point on records going back to 1996 and down sharply from the 0.6% that the agency recorded in April.
After hitting a record high point of 4% last June and July, euro zone inflation has fallen sharply as oil and other commodity prices have collapsed in the face of a dire economic downturn. In May 2008, 12-month inflation had stood at 3.75%.
While headline inflation hit zero in May, underlying inflation, which excludes volatile energy, food, tobacco and alcohol prices, fell to 1.5% from 1.8% in April.
