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Inflation ticked up in Europe in May. That likely won't stop a central bank rate cut next week

Inflation ticked up to an annual 2.6% in Europe in May

David McHugh
Friday 31 May 2024 10:17 BST
Financial Markets
Financial Markets (Copyright 2024 The Associated Press. All rights reserved)

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Inflation ticked up to an annual 2.6% in Europe in May, according to official figures on Friday. That's more than expected as a painful spike in consumer prices takes its time to fade away.

Yet that’s unlikely to stop the European Central Bank from making a first interest rate cut next week — and moving ahead of the U.S. Federal Reserve in lowering borrowing costs for businesses and consumers.

The official figure for the 20 countries that use the euro currency compares to 2.4% in April, according to European Union statistics agency Eurostat. Markets had expected 2.5% for May.

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