Inflation across the eurozone’s four largest economies remained above the European Central Bank’s 2% target for a third consecutive month in May, reinforcing expectations that policymakers may need to raise interest rates again next month.
According to preliminary data reported by Reuters, price pressures persisted in France, Germany, Italy and Spain as higher fuel costs stemming from the Iran conflict started feeding into broader segments of the economy. The latest readings are likely to strengthen the case for tighter monetary policy while raising concerns that inflationary pressures could become more entrenched across the currency bloc.
