Fall in Europe’s inflation rate

City A.M. Reporter
EUROZONE inflation eased further than expected to its lowest level in more than a year in May, official data showed yesterday, giving the European Central Bank (ECB) a little more room to lower interest rates amid fears of deep recession across the continent.

Consumer price inflation in the 17 nations sharing the euro fell to 2.4 per cent year-on-year in May from 2.6 per cent in April, the EU's statistics office Eurostat revealed.

Meanwhile official data showed German retail sales rose 0.6 per cent in April, down from 1.6 per cent in March but still stronger than the drops recorded in other parts of the Eurozone.

German unemployment dropped slightly to 6.7 per cent, again underlining the economy’s resilience.