Inflation in the euro zone rose to 2.6% in May, statistics agency Eurostat said Friday, but a higher-than-expected print did not sway market bets of an interest rate cut from the European Central Bank next week.
Core inflation, excluding the volatile effects of energy, food, alcohol and tobacco, increased to 2.9% from 2.7% in April.
The data comes with the ECB widely expected to cut interest rates at its June 6 meeting, the first reduction since 2019.
While headline inflation increased in May, fluctuations in the rate have been forecast over the coming months due to base effects from the energy market and the unwinding of government fiscal support schemes across the bloc, .
Staff are also due to release their latest round of inflation and growth projections at next week's meeting, providing more clues on the pace and level of potential cuts this year.
Persons:
Klaas Knot, Kamil Kovar
Organizations:
Eurostat, European Central Bank, Reuters, ECB, Staff, Moody's, U.S .
Locations:
Corfu, Old Town, Greece, London