European Central Bank rate cut 'now imminent' despite Eurozone inflation rise

Services inflation rises most

Eurozone inflation rose more than expected to 2.6% in May, according to estimates from the European Union’s statistical office Eurostat.

This marks a 0.2 percentage point rise from April's rate of 2.4%, with the services sector most responsible for this rise. Despite this increase, analysts have echoed reassurance that the European Central Bank will still be able to cut rates. "Today's data does not disturb the narrative that, broadly, disinflation remains on track," said Natasha May, global markets analyst at J.P. Morgan Asset Management.  Record low unemployment rate spells quiet optimism across the Eurozone "The ECB has its scissors at the ready after today's inflation release," she added, with a rate cut from th...