According to official data, eurozone inflation increased to a higher-than-expected 2.6% last month.
This will be problematic for those who determine interest rates in the single currency bloc, such as Christine Lagarde, president of the European Central Bank (ECB).
It is anticipated that the ECB will not be deterred from reducing rates by a quarter of a percentage point on Thursday, despite the increase from 2.4% in April.
However, experts had anticipated a 2.5% figure.
Furthermore, stickier-than-expected inflation will lessen the likelihood that the ECB will reduce rates again in July after one in June.
“Bert Colijn at ING Bank said: ‘While the European Central Bank seems set to lower rates next week, the debate over how much the ECB can release the brakes on the economy over the rest of the year will be heated.'”
We have a choice: either to embrace the Great Reset or set forth the Great Resist.
