Eurozone inflation fell below the European Central Bank’s 2 per cent target in May for the first time in seven months, as it considers a further cut to interest rates this week.
May’s annual inflation reading of 1.9 per cent was down from April’s 2.2 per cent figure and below analyst expectations of 2 per cent in a Reuters poll.
It was the first time annual inflation was below the 2 per cent goal since September, when it briefly dropped to 1.7 per cent after exceeding the target for more than three years.
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