BRUSSELS (AP) — Official figures show that inflation across the 17 countries that use the euro fell by more than anticipated during May — a development that may fuel market expectations that the European Central Bank will cut interest rates next week.
Eurostat, the European Union's statistics office says Thursday that inflation in the year to May fell to 2.4 percent from 2.6 percent the previous month. The expectation in the markets was for a more modest decline to 2.5 percent.
Though inflation is running above the ECB's target of keeping price increases below 2 percent, it's under pressure to lower its main benchmark rate from the current 1 percent given an ailing eurozone economy.
