Euro area inflation unexpectedly falls to 0.5%yoy in May after 0.7%yoy in April

Inflation fell again in May, against most analysts’ expectations of a stabilisation or small rise. Core inflation is estimated to have fallen from 0.9%yoy to 0.6%yoy.
These very weak inflation numbers, should support the ECB’s decision to act in June to ease monetary policy, either through lowering the main refinancing rate or through further quantitative easing (such as purchasing asset-backed securities).