According to Eurostat’s first estimate, inflation in Greece slowed further to 4.1% in May from 4.5% in April. In the euro area, inflation fell to 6.1% from 7% in April.

Excluding energy, food, alcohol and tobacco prices, consumer prices rose 5.3% year-over-year, compared with April’s 5.6% and 5.5% growth expected by analysts in a Bloomberg survey.

Eurostat data confirms signs that inflation is coming down, a welcome development for both ECB policymakers and governments as households suffer an unprecedented accuracy crisis.

But persistently high core inflation is expected to push rates further up two weeks from today, even as data showed the German economy has slipped into recession and financial risks are mounting.

Analysts are expecting another 25 basis point rate hike on June 15 and believe that the cycle of appreciation in the value of money will be completed with another step. Eurozone deposit rates are already at 3.25%, below zero last July.

Source: money review