Eurozone’s inflation increased 0.5% in May, after a 0.7% gain in March. Analysts had expected a 0.7% rise. Inflation target by the European Central Bank (ECB) is 2%.

German inflation was released yesterday. Inflation in Germany also declined. German preliminary consumer price index fell 0.1% in May, after a decline of 0.2% in April. Analysts had expected a 0.1% rise. On a yearly basis, German preliminary consumer price index rose 0.9% in May, after a 1.3% gain in April. Analysts had forecasted a 1.1% increase.

All these figures are feeding speculation the European Central Bank will add further stimulus measures on Thursday. Investors are awaiting the ECB will cut interest rates and announce measures to boost lending to smaller businesses.

The unemployment rate in the Eurozone fell to 11.7% in April from 11.8% in March. Analysts had expected the unemployment rate remains unchanged.