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A Euro-Zone Inflation Hiccup Is Unlikely to Thwart ECB Rate Cut
A probable pickup in euro-zone inflation this month is unlikely to derail the juggernaut of an imminent interest-rate cut by the European Central Bank. Data next Friday will show consumer prices rose 2.5% from a year earlier, up from 2.4% in April, according to the median forecast of 34 economists in a Bloomberg survey. The so-called core measure that policymakers tend to focus on — because it strips out volatile elements such as energy — probably stopped weakening for the first time since July, staying at 2.7%. While both outcomes would signify a lack of progress in the right direction toward the ECB’s 2% ... (full story)