world-economy

Euro Zone Inflation Shows First Signs of Easing as Energy Costs Moderate

Eurozone inflation is expected to cool for the first time since Middle East tensions escalated. Data due next week will capture the effects of declining energy prices. Consumer price expectations for the coming year dropped sharply in May, signaling diminishing pressure on household purchasing power across the currency bloc. Crude oil price declines have prompted traders to scale back wagers on European Central Bank rate increases. Market pricing now reflects less than a quarter-point in additional tightening. The shift suggests the ECB may have limited justification for further monetary policy action in the near term.