France’s annual inflation rate eased more than expected in May, reinforcing expectations of ECB rate cuts next week.
France’s preliminary May consumer price index rose 2.4% year-over-year, below the 2.5% consensus and down from April’s 2.2%. The harmonized index climbed 2.8%, also missing forecasts of 2.9% and prior 2.5%.
Analysts had anticipated a slight uptick in inflationary pressures following April’s softer print. The weaker-than-expected data aligns with broader eurozone trends, where inflation has shown signs of moderating.
Markets are pricing in a higher probability of a European Central Bank rate cut at its June 6 meeting, with traders focusing on upcoming eurozone-wide CPI data due later this week.