Inflation in the 20 countries that share the euro has fallen to 2.6% from more than 10% in late 2022, largely thanks to lower fuel costs and an easing of post-pandemic supply snags
The ECB has all but promised a rate cut on June 6 so the discussion has shifted to how quickly its next move should come and what conditions must be met for more easing
Euro zone inflation stood at 2.4% in April and a crucial indicator of underlying price pressures slowed while the economy staged a small rebound
The fourth quarter GDP figure was also revised down to a negative 0.1% from a previous 0.0%, meaning that the euro zone was in a technical recession in the second half of 2023
Price growth, now a long way from its peak in double digit territory in late 2022, fell as unprocessed food, energy and industrial goods inflation all slowed
The U.S. 10-year Treasury yield - which sets the tone for other bond yields around the world - has dropped around 28 bps since surging to a 16-year high of 4.887% last week
The euro sat at a 10-month high against the dollar on Thursday, ahead of a European Central Bank meeting
The core inflation drop reinforces calls by European Central Bank doves to maintain the stimulus to the economy
Inflation measure excludes volatile energy and unprocessed food prices also fell to 1% from 1.2%