Glimmer of hope ECB won't need to chase rates much higher

Inflation data out on Thursday take on additional significance ahead of ECB's next rate decision on June 15 

The European Central Bank in Frankfurt.

A sharp de-acceleration in Spanish inflation has brought a glimmer of hope that the European Central Bank won't need to force interest rates as high as once feared.

Spain's headline rate of consumer prices rose by an annual 3.2% in May, down from over 4% in April, and lower than the estimates of analysts, to reach its lowest since the summer of 2021. It statistics office highlighted the easing of price pressures for food and energy.