According to Jin Ten data, France's inflation in May cooled more than expected, potentially clearing the way for the European Central Bank to lower interest rates next month. The preliminary year-on-year Harmonized CPI for May was 0.6%, down from 0.9% in April.
The decline in service and energy inflation has driven down prices, but food inflation has slightly increased. Overall inflation remains well below the European Central Bank's target of 2%, and investors expect the ECB to cut the benchmark interest rate on June 5.