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Euro area inflation confirms deceleration to 1.2%

Euro area inflation confirms deceleration in May

Euro area inflation confirmed deceleration to 1.2 percent in the year through May, the final consumer price index reading showed.  

CPI came in at 1.2 percent in May, coming in line with both flash and forecast readings, down from 1.7 percent in April.

The core CPI reading rose 0.8 percent in May year-on-year, matching forecasts, sliding from 1.3 percent in April.

As of 09:37 GMT, the euro traded lower at $1.1186, the lowest level since June 3, compared to the session’s open at $1.1217.

The shared currency came under pressure after ECB President Mario Draghi left the door open to interest rate cuts and/or further bond purchases.

"Further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools. And the APP (asset purchase program) still has considerable headroom," Draghi said in Sintra at the ECB’s forum on central banking.

European shares reversed earlier losses, where the Euro STOXX 600 climbed 0.6% to 380.75.

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