French inflation falls, opening door for ECB rate cut

Mars Finance News, on May 27, France's inflation cooled more than expected in May, potentially clearing the way for the European Central Bank to cut rates next month. Data released on Tuesday showed that the harmonized CPI year-on-year preliminary value for May was 0.6%, lower than April's 0.9%. The decline in service and energy inflation in France helped prices further drop this month. However, food inflation saw a slight increase. The overall inflation indicator remains far below the European Central Bank's medium-term inflation target of 2%, and investors generally expect the ECB to lower its benchmark interest rate again on June 5.