The final figure of euro zone CPI inflation came out in line with expectations, confirming that CPI fell from 2.8% Y/Y to 2.7% Y/Y in May. On a monthly basis, CPI inflation came out flat as lower prices for energy (-0.6% M/M), recreation & culture (- 0.5% M/M), transport (-0.4% M/M), communication (-0.3% M/M), housing (-0.1% M/M) and health (-0.1% M/M) were offset by higher prices for food (0.5% M/M), alcohol & tobacco (0.3% M/M), clothing (0.3% M/M), hotels & restaurants (0.3% M/M) and household equipment (0.2% M/M). Core CPI, which excludes food & energy, surprised on the downside of expectations, falling from 1.6% Y/Y to 1.5% Y/Y. The details show that the easing in inflationary pressures in mainly due to lower energy prices and a pull back in prices of several seasonal products after they were boosted by Easter and the Easter Holidays. This might indicate that the slowdown in inflationary pressures is only temporary and prices might increase again in the coming months.