Eurozone inflation, May 2025

In May, the Eurozone inflation fell below 2% of the European Central Bank’s goal, striking the cool than expected, 1.9%, with a sharp decline in services, showed the EUROSTAT statistics on Tuesday.

Economists interviewed by Reuters expected the reading could come by 2%compared to 2.2% of the previous month.

Last month, carefully observing how inflation inflation has cooled up to 3.2% compared to the previous 4%. The so -called basic inflation, which eliminates energy prices, food, tobacco and alcohol, also softened, decreasing from 2.7% in April to 2.3% in May.

“The May sharp decline in inflation of services, to the lowest level over the three years, confirms that the jump of the previous month was simply a cause of Easter rise, and that the tendency to reduce inflation remains in the way,” said Jack Allen-Renold’s note, deputy chief economist of the euro.

Inflation moves back to 2% over 2025 amid the uncertainty of the Eurozone economy.

Recent data will be considered by the European Central Bank as it is preparing to make its next decision on the interest rate at the end of this week. Return in AprilThe Central Bank has taken at its key rate, a deposit rate, up to 2.25% – almost half the maximum of 4% sliced ​​in the middle of 2023.

Markets last prices for about 95% of interest rates, which were reduced by another 25 basic scores on Thursday. Given the wide-expected interest rate, the data on Tuesday cannot greatly affect the ECB decision this week, said Allen-Rinold.

“But inflation data is enhanced by the case for another reduction at the next meeting in July,” he said.

But the global economic forecast remains confusing. US President Donald Trump’s Protestant Tariff plans have carried out shadows over the world economic worldview, with its so-called “return” responsibilities, which also affect the European Union-Shiroka as harmful to economic growth. Their direct potential effect on inflation is less clear, with Central Bank’s policies And analysts note that this may depend on any potential measures.

Despite the transatlantic upheaval, the organization on economic cooperation and development in its latest report on Tuesday said it expected that in 2025 it would turn into 1%, without changing from the previous forecast. At the same time, inflation in the euro area will come by 2.2%this year, also in accordance with the March report.

EURO COUNTRY bond yields were the last below after fresh inflation data, with 10-year-old communication German Exit drops more than two basic items up to 2.499%and yield on French 10-year bond was the last than one base up to 3.169%.

Meanwhile, the euro was the last by 0.3% below the dollar.