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Euro-area flash inflation: Peak core
Flash inflation surprised to the downside. Especially price increases in food and goods prices have become smaller. At the same time, many indicators point to continuously high inflation expectations but their credibility tends to be low. In May, Euro-area flash inflation surprised to the downside as headline inflation declined to 6.1% (consensus 6.3%) and core inflation to 5.3% (consensus 5.5%). Both numbers were broadly expected based on the country-level data that was out already yesterday. Especially headline inflation is declining steeply with now also food inflation showing signs of only small price increases ... (full story)