May inflation in eurozone's leading economies likely to be at or below 2% — Bloomberg

Bloomberg reports that inflation in Europe’s four leading economies is now at or below the European Central Bank’s (ECB) target of 2%. 

In May, for the first time in eight months and only the second time since 2021 annual consumer price growth in any of these countries may not exceed the regulator's target, the agency says. 

According to expert estimates, France’s inflation stood at 0.9% in May. Italy’s rate is expected to come at 1.9%, and those of Germany and Spain are forecast to reach 2%. Together, these countries’ GDP accounts for 70% of the eurozone economy, Bloomberg says. Additionally, the news agency reports that a key measure of the region’s pay growth declined in the first quarter.

These results could prompt the ECB to cut rates at its June 5 meeting to boost European GDP. According to the central bank’s Vice President Luis de Guindos, inflation slowed down due to a stronger euro and cheaper energy. Besides, the official says that the disinflationary process is ongoing.

However, in April, the Netherlands posted consumer price growth of 4.1%, with Belgium’s result coming at 2.55%. The countries account for more than 11% of the region's economy, Bloomberg adds.