REUTERS, Brussels

Eurozone consumers cut spending on food, drinks and tobacco for the second straight month in May amid a spike of prices, according to estimates from the European Union statistics office Eurostat released on Wednesday.

The drop in essential purchases came as total retail sales in the 19-country currency bloc slightly rose in May on the month, but below market expectations.

Eurostat said consumers’ purchases increased by 0.2 per cent in May month-on-month after they had tumbled by 1.4 per cent in April.

Economists polled by Reuters had expected a 0.4 per cent rise on the month.

Compared to last year, retail sales also grew in May by 0.2 per cent, Eurostat said, beating market expectations of a 0.4 per cent fall.

Despite the marginal overall increase in retail spending, sales of food, drinks and tobacco dropped on the month by 0.3 per cent, compounding the 2.3 per cent slump recorded in April, which was the worst fall since June 2020 when euro zone nations started to timidly reopen their economies after COVID-19 lockdowns.