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Bloomberg
Confidence in the euro area economy unexpectedly inched up as fears over rising prices slipped for a second month.
A gauge compiled by the European Commission rose to 105 in May — up from a revised reading of 104.9 in April. Economists had expected a slight decline to a 14-month low.
Falling confidence among manufacturers was offset by better readings in the services and construction sectors. The mood among consumers also improved as a measure of expectations for prices over the next 12 months retreated.
The war in Ukraine has fanned already record-breaking inflation, intensifying a cost-of-living crisis across the region. Data are predicted to show euro-zone prices jumped a preliminary 7.8% this month — yet another all-time high.
That’s led the European Central Bank to begin normalising monetary policy, with officials preparing to raise interest rates for the first time in more than a decade in July.