Flash CPI inflation reading for May for the whole euro area was released today at 10:00 am BST. Report was expected to show a small acceleration to 2.5% YoY in the headline measure as well as core measure staying unchanged at 2.7% YoY. Data from member states released earlier this week was inconclusive - Spanish CPI accelerated less than expected, German CPI accelerated in-line with expectations, while French CPI unexpectedly stayed unchanged instead of accelerating.
Actual data for the whole euro area surprised to the upside - headline CPI accelerated from 2.4 to 2.6% YoY, while core inflation measure accelerated from 2.7 to 2.9% YoY. Data is unlikely to have an impact on next week's ECB decision, which is almost certain to result in a rate cut. However, it may impact outlook for the next meetings and encourage Fed to proceed slowly with further cuts.
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Open account Try demo Download mobile app Download mobile appEUR gained following the release and reach a fresh daily high above 1.0840.
Euro area, CPI inflation for May
- Headline: 2.6% YoY vs 2.5% YoY expected (2.4% YoY previously)
- Core: 2.9% YoY vs 2.7% YoY expected (2.7% YoY previously)
EURUSD jumped to fresh daily high above 1.0840 following European inflation data and is testing 200-hour moving average. Source: xStation5
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