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Buyers buy fresh vegetables, fruit and herbs in an external product market under green stripes in Regensburg, Upper Palatinate, Bavaria, Germany, April 19, 2025.
Michael Nguyen / Nurphoto via Getty Images
The inflation of the euro zone fell by more than 1.9% in May, below the target of 2% of the European Central Bank, the flash data of the Eurostat Statistics Agency showed on Tuesday.
Economists interviewed by Reuters expected that the reading of May was 2%, compared to the figure of 2.2% of the previous month.
The so -called basic inflation, which excludes the prices of energy, food, tobacco and alcohol, increased from 2.7% in April to 2.3% in May. The impression of the inflation of closely watched services was also strongly cooled, amounting to 3.2% last month, compared to the reading of 4% previous.
Inflation revised to the 2% mark throughout 2025 in the middle of uncertainty for the economy of the euro zone.
The latest figures will be taken into account by the European Central Bank when he is preparing to make his next interest rate decision later this week. The markets were the last price in approximately 95% of chance of interest rate reduced Thursday at 25 base points.
Go back up AprilThe central bank has taken its key rate, the rate of deposit facilities, at 2.25% – almost half of the maximum of 4% in flood in the middle of 2023.
But the global economic prospects remain muddy. The protectionist tariff plans of US President Donald Trump launched shadows on global economic prospects, with its so -called “reciprocal” duties – which should also affect the European Union – largely considered harmful to economic growth. Their immediate potential impact on inflation is less clear, with Central Bank decision -makers And analysts noting that it could depend on any potential counter-measure.
Despite the transatlantic tumult, the organization of economic cooperation and development in its latest report on economic prospects on Tuesday said that it expected the euro zone from 1% in 2025, unchanged compared to its previous forecasts. The inflation of the euro zone should reach 2.2% this year, also in accordance with the March report.
This is a press article, please come back for updates.
