Eurozone inflation drops to lowest level since Russia invaded Ukraine

Eurozone inflation has fallen more than economists expect to reach its lowest level since Russia’s invasion of Ukraine more than a year ago, raising hopes that monetary policymakers will raise interest rates this summer. Can stop growing.

Annual consumer prices in the single currency bloc of 20 countries rose 6.1 percent in the year to May, slowing from less than 7 percent in April. This is the lowest level since February 2022 and was lower than the 6.3 per cent level forecast by economists in a Reuters poll.

The European Central Bank’s rate-setters focused on core inflation, which separates energy and food prices. The measure fell from 5.6 percent in April to 5.3 percent in May, more than economists expected, but still may not be enough to prevent policymakers from raising rates at their next meeting on June 15.

This is a developing story