Euro-Zone Inflation Slows Below 2%, Backing More ECB Cuts

Euro-area inflation eased more than expected, dipping below the European Central Bank’s 2% target and supporting the case for interest rates to be lowered further.

Consumer prices rose 1.9% from a year ago in May, down from 2.2% in April and below the 2% median estimate in a Bloomberg survey of economists, data Tuesday showed. A core gauge excluding volatile items like food and energy moderated to 2.3%, while pressures in the closely watched services sector cooled markedly.