Inflation in the euro area fell to 1.2 per cent in May, a first estimate from the European Union’s data body Eurostat has shown, down from 1.7 per cent in April.
The figure is well below the ECB’s two per cent target, and will increase pressure on the Bank to delay its current plan to raise rates after the end of this year when it meets for its latest policy decision on Thursday.
Stephen Hubble, chief analyst at Centtrip, said: “Potentially a lot is riding on the ECB’s rate decision and the press conference this Thursday.”
“With Trump threatening tariff increases on Europe’s automotives, Mario Draghi could be forced to take further action to stem the tide,” he said.
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