02.07.24
EA’s prices keep going down with 2.5% rate in May as expected. This rate of inflation has already reached ECB’s projection for 2024 year as was declared on the last ECB meeting.
The further dynamic is, however, under risks because of labor market remaining quite tight with unemployment rate to be at record level of 6.4%. It is below of where it was before pandemic started.
After cutting rates in June ECB is now watching data carefully to make next moves, which may take place in September or later. July’s cut is hardly an option for now.