France's inflation drops, potentially clearing the way for the European Central Bank to cut interest rates next month.

According to the Gate News bot, as reported by Jin10, France’s inflation in May cooled more than expected, potentially clearing the way for the European Central Bank to cut interest rates next month. Data released on Tuesday showed that the preliminary year-on-year Harmonized CPI for May recorded 0.6%, down from 0.9% in April. The decline in service and energy inflation in France helped prices to further fall this month. However, food inflation saw a slight increase.

The overall inflation indicator is still far below the European Central Bank’s medium-term inflation target of 2%, and investors generally expect the European Central Bank to lower the benchmark interest rate again on June 5.