French inflation falls, opening door for ECB rate cut

 inflation in France cooled more than expected in May, possibly clearing the way for the European Central Bank to cut interest rates next month. Data released on Tuesday showed that the initial value of the harmonized CPI annual rate in May was recorded at 0.6%, lower than April's 0.9%. The decline in inflation in the service industry and energy in France helped prices fall further this month. However, food inflation slightly increased. The overall inflation index remains well below the European Central Bank's medium-term inflation target of 2%, and investors generally expect the European Central Bank to cut the benchmark interest rate again on June 5.