Today's European data indicate a continued easing of inflati...

Today's European data indicate a continued easing of inflation across European countries.

• Spain's CPI inflation for April presented lower than anticipated figures, with a headline CPI of 3.3% YoY versus an expected 3.3%, and a MoM growth of 0.7%. Core CPI also decreased YoY from 3.3% to 2.9%.

• The German CPI inflation similarly showed subdued results with it being slightly below expectations at 0.5% MoM and 2.2% YoY, with core CPI easing from 3.3% to 3.0% YoY.

• The European Economic Sentiment report showed that selling price expectations in the coming months across sectors remained stable or declined, suggesting weakened inflation pressures ahead. The subindex for service sector selling price expectations was the lowest since 2021.

Collectively, these data points demonstrate a trend towards reduced inflationary pressures within the EU. Despite the broad show of disinflation, European markets are mixed.