The euro area inflation in May slowed in line with the flash estimate and expectations, yet remains well above 2.0% target for the ECB after Trichet already signaled a likely rate hike for the coming month.

Inflation in May marginally slowed as the Consumer Price Index was flat following 0.6% rise in April to an annual 2.7% from 2.8% previous, in line with expectations. Core CPI slowed to 1.5% on the year from the previous and expected 1.6%.