Euro inflation eases

2,5 percent rate, based on the median of 32 estimates in a Bloomberg News survey. A separate report showed German unemployment fell last month.
Crude oil prices have dropped about 16 percent in the past two months, easing inflation pressures and giving the European Central Bank more room to focus on ways to bolster the economy after Greece’s inconclusive elections raised investor concerns about a euro breakup.
The single currency slumped to a near two- year low versus the US dollar this week and European economic confidence dropped more than economists forecast in May.
“The persistent economic downturn in the eurozone is likely to keep underlying inflation low for a protracted period,” said Martin van Vliet, an economist at ING Bank in Amsterdam. “Although the ECB will likely keep interests rates on hold next week,” President Mario Draghi “could open the door to further monetary easing later this year”.
Adding to signs of a deepening slump, German business confidence fell more than economists forecast in May, recording the steepest decline since August.
A gauge of euro-region manufacturing output dropped to the lowest in 35 months in May, while a measure of services industries fell to a seven-month low.
German unemployment rate fell to 6,7 percent in April from 6,8 percent. The number of jobless was unchanged in seasonally adjusted terms at 2,87 million. Economists in a Bloomberg survey had forecast a drop.
German retail sales rose a faster-than-forecast 0,6 percent in April from the previous month, when they advanced 1,6 percent, separate data showed. In France, consumer spending also rose more than projected last month, increasing 0,6 percent. Producer-price inflation slowed to 2,7 percent from 3,7 percent, adding to signs of easing cost pressures, according to a report published by the Insee statistics office.
Elsewhere today, domestic demand spurred an unexpected gain in South Korean industrial production in April and stronger- than-forecast growth in the Philippine economy in the first quarter, two reports showed — Bloomberg.