Euro zone inflation well above expectations in May, offers relief to European Central Bank
The ECB has a mandate to keep inflation below but close to 2 percent, a task that has proven challenging as, even with economic growth on its best run in a decade, price pressures have remained stubbornly subdued. The ECB has spent months setting up investors for an end to its 2.55 trillion euros ($3 trillion) bond purchase scheme. However, political crises in Italy and, potentially, Spain risk reigniting market turbulence on the bloc`s periphery and derailing the bank`s exit strategy.
Euro zone inflation jumped far more than expected in May on higher energy costs, offering relief to the European Central Bank after market turbulence that has jeopardised its planned exit from a lavish stimulus programme. Image source: Reuters