Eurozone Inflation Dips Below Target Ahead of Key ECB Rate Decision

Eurozone inflation fell to 1.9% in May , its lowest level in seven months and just under the ECB’s 2% target. This is a drop from 2.2% in April and below market expectations. The euro reacted immediately, sliding 0.3% against the dollar . The timing is crucial, as the European Central Bank meets this week to decide whether to lower its benchmark interest rate to 2%, a level not seen in over two years. Market experts now believe the ECB is likely nearing the end of its rate-cutting cycle , especially as energy prices drop and wage pressures ease faster than predicted.

Source: Coinpaprika