Annual inflation, measured as the price change between the current month and the same month of the previous year, fell in both the euro area and the European Union in May according to new statistics published by the statistical office of the European Union.

The figures show euro area annual inflation was 2.7% in May, down from 2.8% in April, though up from 1.7% a year earlier.

Meanwhile, EU annual inflation was 3.2% in May, down from 3.3% in April. A year earlier the rate was 2.1%. Monthly inflation was 0.1% in May.

The euro area includes Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland, Greece, Slovenia, Cyprus and Malta, Slovakia and Estonia.

Among the EU member states, the lowest annual rates were observed in Ireland, Sweden, and the Czech Republic, at 1.2%, 1.7% and 2% respectively. Conversely, the highest rates were observed in Romania (8.5%), Estonia (5.5%) and Lithuania (5%).

The main components with the highest annual rates in May 2011 were transport (5.3%), housing (4.7%) and alcohol & tobacco (3.3%). The lowest annual rates were observed for communications (-1%), recreation & culture (0%) and household equipment (1.0%).

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