Welcome to Extreme Investor Network, where we provide unique insights and analysis on the latest economic trends and developments. In our latest blog post, we take a closer look at the recent inflation data in the euro zone.
According to statistics agency Eurostat, inflation in the euro zone rose to 2.6% in May, surpassing economists’ expectations. Core inflation, which excludes the volatile effects of energy, food, alcohol, and tobacco, also saw an increase to 2.9% from the previous month.
The data comes as the European Central Bank (ECB) is widely expected to cut interest rates at its upcoming meeting on June 6. This would mark the first reduction since 2019, as the ECB looks to support economic growth amid lingering uncertainties.
The ECB’s decision to cut rates follows a period of rate hikes that began in July 2022, with the current rate standing at 4%. Any deviation from a 25 basis point cut at the June meeting would come as a major surprise to markets, given the strong signaling from policymakers in recent weeks.
While headline inflation has cooled significantly from its peak in October 2022, fluctuations are expected in the coming months due to base effects from the energy market and the unwinding of government support schemes.
Stay tuned for more updates on this developing story as we continue to monitor the evolving economic landscape in the euro zone. Subscribe to Extreme Investor Network for exclusive insights and analysis on key economic indicators and trends.