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EUR: inflation soars to 1.9%

By Ricky Bean June 18th, 2018

The ECB has been way below its target rate of 2% inflation for a while now, but figures released on Friday showed that they are almost there. From an upwardly revised rate of 1.3% in April, inflation jumped to 1.9% in May, which was in line with expectations. It is the highest rate since April 2017 and is largely because of a steep increase in oil prices.

The balance of trade figures for April came in better than expected, by hitting a surplus of €16.7 billion against a forecast of €14.2 billion. This compares with a surplus of €15.7 billion in the same month last year. The releases combined to help the euro retrace some of the significant losses it suffered on Thursday, with the single currency climbing higher against sterling and the dollar.

Today is quiet for economic data releases, although ECB President, Mario Draghi is set to deliver a speech at 8pm tonight. Tomorrow we will see the construction output figures for April.