Euro zone inflation falls in May, unemployment remains flat
According to a preliminary estimate from Eurostat today, euro zone inflation eased in May to 2.7%, from 2.8% in April.
Last month, the European Central Bank (ECB) raised interest rates from 1% to 1.25% – the first time in almost three years in a bid to fight inflation.
However, despite the fall, analysts expect inflation to rise again, which could lead to further interest rate hikes.
In other news today, Eurostat also revealed unemployment in the 17-member nation remained at 9.9% in April, down from the 10.2% reported a year ago.
Spain continues to have the highest rate of unemployment in the euro zone at 20.7%. It also has the highest unemployment rate in the industrialised world. The country has been hit by a severe slump within its key construction industry, which has led to a significant amount of job losses.
Meanwhile, the lowest unemployment rate is in the Netherlands at 4.2%.
The unemployment rate in the 27-nation European Union fell to 9.4% from March’s 9.5%.