US EditionEuro zone inflation falls to cooler-than-expected 1.9% in May, below ECB target
- In May, consumer price inflation across the euro area’s 20 member states decreased to 1.9%, falling short of the European Central Bank’s 2% target.
- The slowdown followed a sharp decrease in services inflation from 4.0% in April to 3.2% in May and easing energy prices.
- Since last June, the ECB has lowered interest rates on seven occasions, and market participants are anticipating an additional 0.25 percentage point reduction to 2.00% in the near future.
- Investors price in over a 95% chance of another rate cut this week, while muted wage growth and a strong euro also support easing inflation.
- The inflation decline may pause due to geopolitical tensions and longer-term price pressures, with some economists expecting inflation to stay below target until 2026.
102 Articles
102 Articles
(Sejong = Yonhap News) Reporter Lee Dae-hee and Song Jeong-eun = The consumer price index, which had been moving in the early 2% range this year, fell back to the 1% range last month.
Eurozone inflation drops to 1.9% in May
Eurozone inflation slowed sharply in May
BRUSSELS, Belgium – Inflation in the eurozone eased in May to its lowest level in eight months, back below the European Central Bank’s two-percent target, further raising expectations for another interest rate cut this week. Year-on-year consumer price increases in the single currency area slowed more than predicted by analysts for FactSet to 1.9 percent, down from 2.2 percent in April, the EU’s official statistics agency said. Core inflation — …
Associated Press News
Inflation slides to 1.9% in Europe, as worries shift from prices to Trump and tariffs
Inflation in the 20 countries that use the euro fell to 1.9% in May from 2.2% in April, helping clear the way for more interest rate cuts from the European Central Bank.
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