The tone of economic data coming out of the Eurozone has improved somewhat from the crisis days of 2011/12. The recent pickup in CPI inflation to 1.4%, from the 38-month low of 1.2% in April, has quashed the spectre of deflation. However, the economic bloc still has a long way to go before we can see any green shoots of recovery. “Despite improved survey evidence for May, we suspect that the Eurozone will continue to struggle for growth over the coming months. Consequently, we believe there is a strong chance that the ECB will end up taking interest rates down from 0.50% to 0.25% within the next few months,” says ... (full story)