India, June 3 -- Euro area inflation fell below the 2 percent target in May largely due to the slowdown in services inflation and reinforced expectations for another interest rate reduction from the European Central Bank later this week.
Inflation softened more-than-expected to 1.9 percent in May from 2.2 percent in April, figures from Eurostat revealed on Tuesday. The rate was expected to slow to 2.0 percent.
Core inflation that strips out prices of energy, food, alcohol and tobacco, slowed to 2.3 percent from 2.7 percent. The rate was forecast at 2.4 percent.
Headline inflation has been hovering near the ECB's target and fell below 2 percent for the first time since September 2024. The disinflation process has given policymakers the le...