The European Central Bank is expected to keep interest rates on hold when it meets tomorrow, four weeks after its surprise quarter point cut.
Economists saw on average a 75 per cent likelihood the ECB would keep its key lending rate unchanged at 4.50 per cent tomorrow, but most analysts expect another cut - possibly next month.
Among the items for discussion at the meeting is the acceleration in April in euro zone inflation to an annual rate of 2.9 per cent from 2.6 per cent in March, moving further away from the ECB's medium-term 2 per cent inflation ceiling.
Provisional data from Germany and Italy, which make up half of the single currency area, signalled inflation could edge even higher in May.
German inflation leapt to 3.5 per cent year-on-year in May, its highest level in almost eight years, according to preliminary figures based on state data. Inflation in Italy eased in May but at 3 per cent year-on-year it was still well above the ECB's ceiling.