French Inflation Drops, Opening Door for ECB Rate Cut

BlockBeats News, May 27th: Inflation in France in May cooled more than expected, potentially paving the way for an ECB rate cut next month. Data released on Tuesday showed that the initial reading of the harmonized CPI year-on-year rate in May was 0.6%, lower than April's 0.9%. The decline in inflation in France's services and energy sectors helped prices fall further this month.

However, food inflation slightly increased. The overall inflation index remains well below the ECB's medium-term target of 2%, and investors widely expect the ECB to cut interest rates again on June 5th.