Eurozone May Inflation Accelerates to 3.2%, Cementing ECB June Hike at 2.5% Core
Updated
Updated · TradingView · Jun 5
Eurozone May Inflation Accelerates to 3.2%, Cementing ECB June Hike at 2.5% Core
3 articles · Updated · TradingView · Jun 5
Summary
Eurozone flash CPI rose to 3.2% in May from 3.0%, while core inflation climbed to 2.5% from 2.2%, showing price pressures broadened beyond the prior month.
Higher energy prices drove the headline gain, and the firmer core reading reinforced market expectations that the ECB will raise rates at its June meeting.
ECB policymaker Olli Rehn called a June move an "insurance" hike against future inflation risks, signaling policymakers may avoid a follow-up increase in July without stronger data.
Markets largely kept their risk-on tone despite unresolved US-Iran talks, a backdrop ECB watchers see as another reason the bank could pause until at least September after June.