From Yahoo Finance: 2025-06-03 08:04:00

Inflation in the eurozone dropped to 1.9% in May from 2.2% in April, due to lower energy prices. This could prompt the European Central Bank to consider more rate cuts to support economic growth amid Trump’s tariff actions.

The ECB’s benchmark rate, currently at 2.25%, may see a reduction to stimulate economic activity. Analysts anticipate a quarter-point cut in rates at the upcoming council meeting led by Christine Lagarde.

Trump’s tariff increases on steel, aluminum, and autos, along with proposed tariffs on EU goods, have sparked concerns about economic growth. The EU has lowered its growth forecast for eurozone countries to 0.9% from 1.3% due to these trade tensions.



Read more at Yahoo Finance: Inflation slides to 1.9% in Europe, as worries shift from prices to Trump and tariffs