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Published on Tuesday, June 3, 2014 | Updated on Wednesday, June 4, 2014

Eurozone inflation: new downward surprise

After the volatility in inflation figures in March and April due to seasonal factors, May figures show further evidence on the weakness of inflation. Looking beyond the volatility of recent months, core inflation has been fluctuating around 0.8% YoY since late last year, in line with the relative weakness of domestic demand in the eurozone. We expect the ECB to ease monetary policy on Thursday.