Inflation & Prices

Euro-Zone Inflation Up More Than Expected Before ECB Cut

  • Consumer prices rose annual 2.6% in May; median est. 2.5%
  • Borrowing costs are still set to be lowered next week
Shoppers on Rua do Principe in Vigo, Spain.Photographer: Brais Lorenzo Couto/Bloomberg
Lock
This article is for subscribers only.

Euro-area inflation accelerated more than anticipated — further clouding the outlook for European Central Bank interest rates after next week’s planned cut.

Consumer prices rose 2.6% from a year ago in May, up from 2.4% in April, Eurostat said Friday. That’s more than the 2.5% median estimate of analysts in a Bloomberg survey but in line with a Nowcast by Bloomberg Economics.