ECB Under Pressure as Inflation Slows More Than Forecast

• Euro-area inflation eased more than expected in May, piling further pressure on European Central Bank policymakers as they assess a deepening slowdown and the need for stimulus.
• The euro area failed to live up to expectations when the flash inflation estimate for May came in at 1.2%, which may increase the pressure on the European Central Bank to act at this week’s policy meeting on Thursday.
• There was also disappointing data for the U.K. this morning, with retail sales declining the most on record in May, while the construction industry slowed the most in more than a year.
• The numbers come as President Donald Trump continues his visit to the country, where he urged his hosts to throw off the shackles of European Union membership and hinted at a trade deal.

(Source: Bloomberg)