German Inflation Slows More Than Forecast as ECB Meeting Nears
- Rate dropped to 1.4% in May as Easter effect unwound
- ECB officials debating how and when to begin stimulus exit
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German inflation slowed in May, underpinning recent comments from European Central Bank officials that the 19-nation bloc still needs extraordinary monetary stimulus.
The rate dropped to 1.4 percent in May from 2 percent in April, sharper than the decline to 1.5 percent predicted in a Bloomberg survey. Inflation in the euro area, due Wednesday, is forecast to have cooled to 1.5 percent, though the German data means there’s now a risk of a weaker reading.