We expect Eurozone May inflation to come out at 0.5% YoY (consensus: 0.5%; April: 0.7%), confirming the ‘flash’ figure released two weeks ago. The decline is mostly related to food inflation (fresh food prices collapsed following favourable spring weather conditions) and to services (namely, a drop in German package holidays). We see core inflation at 0.7% YoY, also in line with consensus and confirming the preliminary estimate. Inflation in the Eurozone should remain subdued around 0.5% YoY over the coming months, unless oil prices continue to escalate. ZEW current conditions have been improving sharply over the ... (full story)