Eurozone inflation falls below target due to trade war effects, ECB expected to lower rates

From Investing.com: 2025-06-03 06:11:00

Eurozone inflation dropped below the ECB target of 2% in May, with services inflation falling from 4% to 3.2%. This has raised concerns about the possibility of undershooting the target. Recent trade war developments, including falling global commodity prices and a stronger euro, have contributed to the decline in inflation. Despite some positive survey data, the overall trend remains down. As a result, the ECB is expected to lower the deposit rate to 2% on Thursday, sparking debate about moving rates below neutral to support the economy.



Read more at Investing.com: Eurozone Inflation Drops Below 2% Ahead of June ECB Meeting