Eurozone’s inflation eased more than expected in May as flash figures showed that the reading was the lowest level since February 2022.
Inflation for May fell to 6.1% from 7% in April, surprising the market that expected inflation to come in at 6.3%.
Meanwhile, core inflation, which excludes the volatile energy and food prices, also fell more than expected to 5.3% from 5.6%.
The drop was supported by inflation data in Germany and France that fell more than than expected in May, which is now at a 12-month low. Spain and Italy also reported easing inflation data as well.
The European Central Bank will meet on June 15 for another policy decision.
The market expected rate hikes to continue as inflation data has yet to reach target range. The current benchmark rate is 3.25%, the highest since 2008.