Euro-Area Inflation Slows More Than Forecast Before ECB Meeting

  • Price growth slows to 1.4%, below 1.5% median estimate
  • ECB Governing Council prepares for June 8 gathering in Tallinn

Why the ECB Isn’t Concerned With Slow May Inflation

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Euro-area inflation slowed more than economists forecast, giving ammunition for European Central Bank policy makers who say it’s too early to commit to an exit from monetary stimulus.

Consumer-price growth decelerated to 1.4 percent in May -- the weakest reading this year -- from 1.9 percent a month earlier, Eurostat said on Wednesday. A measure that strips out volatile components such as energy and food fell to 0.9 percent, also weaker than expected. In a separate release, the European Union’s statistics office said unemployment declined to 9.3 percent, its lowest level since March 2009.