Eurozone inflation fell to 1.9% in May

The May inflation rate for the 20 eurozone countries dropped below the 2% target set by the European Central Bank (ECB) to 1.9%. Reuters experts had predicted that consumer prices in the region would rise by 2% last month. The actual figures were lower than forecast due to easing inflationary pressures in the services sector and lower energy prices, the news agency reports.

A month earlier, it was at 2.2%. Despite growing trade tensions caused by Donald Trump's tariff policies, inflation in Europe is steadily declining. Moreover, the core index, which excludes volatile energy and food prices, also dropped, reaching 2.3% in May after 2.7% in April.

Some experts believe that consumer price growth in the region will continue to slow down this year and will only recover next year. This has led to growing expectations of further interest rate cuts by the central bank. The next monetary policy meeting will be held this week. The regulator will have to compare widely divergent short- and long-term inflation forecasts to determine the ECB's future strategy.