MW: Euro-zone inflation unexpectedly slips to 0.5% in May
By Sara Sjolin
LONDON (MarketWatch) -- Inflation in the euro-zone fell to 0.5% in May from 0.7% in April, missing forecasts of a 0.6% reading and adding more pressure on the European Central Bank to ease the economy at its meeting on Thursday. The preliminary data for May from Eurostat, released on Tuesday, showed the weak inflation level largely was due to the energy and industrial-goods sectors, where prices were flat compared with a year ago. Meanwhile, food, alcohol and tobacco prices rose less in May than in April. Eurostat also released unemployment data for April on Tuesday, showing the joblessness level in the currency union fell to 11.7% from 11.8% in March. The euro EURUSD +0.09% initially rose after the two releases, but fell back close to the pre-data level of around $1.3603.
