Eurozone inflation has fallen more than economists expected to hit its lowest level since Russia invaded Ukraine more than a year ago, bolstering hopes that monetary policymakers could stop raising interest rates this summer.

Annual consumer prices in the 20-country single currency bloc rose 6.1 per cent in the year to May, decelerating from 7 per cent in April. That is the lowest level since February 2022 and was lower than the 6.3 per cent level forecast by economists in a Reuters poll.

European Central Bank rate-setters are focused on core inflation, which strips out energy and food prices. This measure fell from 5.6 per cent in April to 5.3 per cent in May, which is more than economists expected but may still not be enough to convince policymakers to stop raising rates at their next meeting on June 15.

This is a developing story

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