Eurostat released its Flash Estimate for CPI in May. Data revealed that inflation in The Eurozone marginally decreased to an annual rate of 2.7 percent from previous month’s 2.8 percent rate. This was surprising since expectations were for no change.
Could this influence the European Central Bank enough so that they won’t keep raising interest rates? All eyes are on the next ECB meeting to be held on June 9th.
Eurostat bases this estimate on energy prices and EU member states that report early CPI data. The report is narrow and void of line items. Energy prices, oil, fell in the last month and so could have affected the data.
Meanwhile, the European unemployment rate was also released, remaining unchanged at 9.9 percent, in line with expectations.
EURUSD is still holding strong, reaching 1.4422 even after the news.