Investing.com - Consumer price inflation in the euro zone rose less than expected in May, underlining concerns over the threat of deflation in the region, official preliminary data showed on Tuesday.
In a report, Eurostat said consumer price inflation increased by a seasonally adjusted 0.5% last month, down from 0.7% in April and missing expectations for a reading of 0.7%.
The rate stands well below the European Central Bank's target of near but just under 2%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 0.7% in May, slowing from 1% in April and below expectations for 0.8%.
Following the release of the data, the euro turned higher against the U.S. dollar, with EUR/USD rising 0.04% to trade at 1.3603, compared to 1.3593 ahead of the data.
Meanwhile, European stock markets remained lower. The Euro Stoxx 50 fell 0.15%, France’s CAC 40 dipped 0.1%, Germany's DAX slumped 0.25%, while London’s FTSE 100 declined 0.4%.