
Euro area May inflation rises to 3.2%, lifting ECB rate-hike expectations ahead of June 11 meeting
Euro area annual inflation increased to 3.2% in May from 3.0% in April, according to a flash estimate released in early June. The print reinforces market expectations for a European Central Bank policy rate increase at the June 11 Governing Council meeting. EU leaders are also preparing for a June 18-19 summit focused on Ukraine diplomacy and migration implementation. Investors are monitoring implications for borrowing costs and regional growth amid persistent energy-price pressures.