Business

Eurozone inflation drop seals deal for ECB

By David McHugh
Published June 3, 2014 3:58pm ET
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Eurozone inflation drop seals deal for ECB
A man looks at a construction site from a small aperture from behind a sheet of metal fencing, in northern Greek city of Thessaloniki on Monday, June 2, 2014. Greece's trade federation said Monday that some 31 percent of all shops in the city center remain unoccupied as a result of the country's acute financial crisis that has seen unemployment hit record-high levels amid a six-year recession. The federation said the number of closed shops was slightly down compared to its last survey about six months ago. (AP Photo/Nikolas Giakoumidis) | NIKOLAS GIAKOUMIDIS

FRANKFURT, Germany (AP) — Another unexpected drop in inflation in the 18-country eurozone has made it a near certainty that the European Central Bank will act this week to support the economy.

The annual inflation rate fell to 0.5 percent in May, below the 0.6 percent that markets expected, the previous month’s 0.7 percent — and way, way below the ECB’s goal of just under 2 percent.

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