Eurozone's Inflation Plummets, Ignites Debate on Rate Cut in European Central Bank

Inflation in the Eurozone has decelerated to its slowest pace since Russia’s invasion of Ukraine. The initial estimate from the European Union’s statistics agency cited by CNN reveals that consumer prices in the euro area rose by 6.1 percent last month compared to the previous year, marking a significant drop from April’s 7 percent surge.

Germany, France, Italy, and Spain, the major economies within the Eurozone, have all witnessed a sharp decline in inflation.

The easing of inflationary pressures can be attributed to various factors. Food prices moderated for the second consecutive month in May. Energy prices, however, declined during the same period. Moreover, core inflation, which excludes food and energy, hit a four-month low of 5.3 percent. These developments indicate a gradual cooling down of the previously heated price trends.

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