Eurozone inflation falls below target to 1.9%

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The Eurozone inflation is below the 2 percent target of the European central bank in May for the first time in seven months, as it considers another reduction of interest rates this week.

The annual inflation of May in the Reuters survey was below 2.2 percent of April 2.2 percent of the image and analysts.

After the release of the data on Tuesday, the Euro goes back into the instant business, reduced by 0.3 percent a day to $ 1.141 at $ 1.141.

The ECB will update its inflation and will make its next decision on interest rates on Thursday. The central bank predicted in March that inflation in the currency region would roam over its moderate 2 percent target this year, before falling to 5.5 percent in 2026.

Prior to Tuesday’s inflation, the financial markets were priced at 2 percent to cut another quarter-point at the interest rate on the ECB benchmark on Thursday, the lowest level in more than two years when the central bank began to decline in June.

This national move means that the ECB “was entering the final stage of its rate-cut cycle”, wrote Pimco’s portfolio manager Constantin Vit Client in a note.

“The pressure of the underlying expenditure begins to disappear, the wage pressure feels a bit faster than the previous expectation,” Vit says low energy prices and a strong euro inflation can also be drawn.

This is a developing story