EU Inflation Continues Downward all Eyes on ECB

Eurozone inflation fell to 0.5% in May, down from 0.7% in April and well below the European Central Bank’s 2% target.

The fall means the ECB will be expected to take steps to boost growth and counter the threat of deflation when it meets on Thursday.

Figures from EU statistics office Eurostat also showed that the eurozone unemployment rate fell slightly to 11.7% in April from 11.8% in March.

The drop means 18.75 million were unemployed in April.

In total, the number of people unemployed fell by 76,000 between March and April.

There were wide variations across the eurozone. Austria had the lowest unemployment rate at 4.9%, closely followed by Germany with 5.2%.

In Greece, unemployment was 26.5% in February, while Spain had a 25.1% unemployment rate.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza