Inflation across the 19-country eurozone has fallen to its lowest level this year, official figures showed Wednesday, in a development that may temper speculation that the European Central Bank will soon consider easing up on its monetary stimulus. May's rate is the lowest rate since December 2016 when inflation stood at 1.1 percent. The most important reason why inflation has been so volatile in recent months is connected to the price of oil, which is off the lows recorded last year but still swinging fairly widely. Its primary aim is to get inflation back toward its target and then to start easing off the bond-buying program. Modest underlying rates of inflation point to sluggish wage demands even at a time when the eurozone economy is performing relatively strongly and unemployment has been dropping.

Source: ABC News May 31, 2017 09:02 UTC