Euro zone inflation falls more than expected to 6.1% as core pressures ease

Inflation successful the euro portion eased much than expected successful May, with flash figures showing the bloc's yearly header ostentation complaint fell to 6.1% successful May from 7% successful April.

This is the lowest level since February 2022. Economists polled by Reuters had expected a May speechmaking of 6.3%.

Core inflation, excluding vigor and food, besides fell much than expected, to 5.3% from 5.6%.

Annual ostentation successful Germany and France dropped much than forecast successful May, according to information released connected Wednesday, arsenic prices dipped connected the erstwhile month. Price rises successful the euro area's largest economies are present astatine 12-month lows.

National prints besides showed ostentation easing successful Spain and Italy. Markets were small moved instantly aft the euro portion announcement, with European stocks trading higher and the euro fractionally higher against the U.S. dollar and British pound. Money markets person priced successful 2 much 25 ground constituent hikes by the ECB, 1 successful June and different successful July oregon September, according to Reuters.

The European Central Bank meets connected June 15 to marque its latest monetary argumentation determination aft gradually hauling its benchmark complaint from -0.5% a twelvemonth agone to 3.25% successful May — its highest level since November 2008.

The ECB did not springiness guardant guidance pursuing its May meeting, but stressed that underlying terms pressures remained strong.

Bundesbank President Joachim Nagel said past week that helium expects "several" much hikes successful bid to power inflation.