Eurozone Inflation Remains Negative But Poised For Oil Boost

LONDON (AP) — Consumer prices across the 19-country eurozone fell again in May but look set to rise in the months ahead due to the recent pick-up in oil prices — an outlook that means the European Central Bank will likely refrain from announcing more stimulus measures this week. When energy costs are stripped out, alongside other typically volatile items such as food, tobacco and alcohol, the so-called core inflation rate was 0.8 percent in the year to May, slightly up from the previous month's rate of 0.7 percent. "Unless oil prices drop back sharply, headline CPI inflation will undoubtedly climb over the coming months as negative energy effects finally fade," said Jonathan Loynes, chief European economist at Capital Economics. "The downward trend in the jobless rate will likely persist in coming months, reflecting improving economic conditions around the monetary bloc, labor market reforms, and a strengthening industrial base in Spain, Portugal and Ireland," said Martin Janicko, economist at Moody's Analytics.