The eurozone inflation rate is in at 1.9%, cooler than expected

In May, Eurozone inflation dropped significantly to 1.9%, beneath the ECB’s 2% goal. This reduction highlights a cooling trend, especially as core inflation also eased to 2.3%.

Traders expect the ECB to cut interest rates by 25 basis points soon, with current rates at 2.25%. This comes as the markets react to easing inflation data and overall economic uncertainties.

The OECD forecasts a 1% growth for the Eurozone in 2025, with inflation projected to stabilize at 2.2% by year-end. The reactions in bond yields indicate potential further easing measures ahead.