Annual inflation dropped to 5.5% in the 20 eurozone countries. However, the European Central Bank is still expected to raise interest rates in July.
The annual inflation rate in the Eurozone dipped sharply in May to 6.1 percent, its lowest level since Russia invaded Ukraine last year. Despite this, European Central Bank Chief Christine Lagarde hinted at further, more gradual interest rate hikes to bring inflation down to its target of 2 percent.
The annual inflation among the 20 nations that use the euro has fallen, but less than expected as food costs surge.
Inflation in the 19 countries using the euro stood at 9.2% year-on-year in December. Having peaked in October at 10.6%, a slight reduction in the pace of inflation is prompting hopes of the peak having passed.