David McNamara: The three key drivers of inflation have now largely dissipated

While some bumps in the road to a sustainable 2% inflation rate can be expected, the broader drivers of the inflationary surge in recent years have now largely dissipated

The sharp rise in wages across the Eurozone in recent years, which has underpinned services inflation, appears to be moderating. File picture: Dan Linehan

The latest Eurozone macroeconomic data suggest price pressures continue to moderate in line with expectations, building the case for a cut in ECB interest rates at its next meeting in June.

Last week’s Eurozone inflation release showed a 2.4% rise in consumer prices in April, just above the ECB’s 2% target.