From Yahoo Finance: 2025-05-02 05:02:00

Euro zone inflation rose more than expected to 2.2%, driven by services and food prices, with core inflation at 2.7%. Despite this, ECB still expected to cut rates due to trade war impact. Policymakers foresee at least one more cut this year, with a deposit rate of 1.75% or lower. However, calls to slow easing are growing as trade war effects on prices may drag inflation down. Trade tensions have already lowered energy prices and strengthened the euro, making imports cheaper. Overall, inflation outlook remains disinflationary due to economic growth concerns and falling oil prices.



Read more at Yahoo Finance: Euro zone core inflation jump not seen preventing rate cut