German states paint mixed picture amid hopes for falling inflation
BERLIN, May 30 (Reuters) - Economists expect Germany's inflation rate to ease further in May towards the European Central Bank's longer-term target of 2%, but state data released on Friday before the national figures painted a mixed picture.
In Bavaria, the inflation rate remained unchanged in May at 2.1%. In Baden-Wuerttemberg it eased to 2.2% from 2.4% in April, in North Rhine-Westphalia it rose to 2.0% from 1.8%, and in Lower Saxony it inched up to 2.3% from 2.2%.
Economists polled by Reuters forecast German inflation to reach 2.0% in May in harmonised terms, down from 2.2% the previous month.
Economists will pay close attention to the national data, with the euro zone's largest economy publishing its figures ahead of data for the entire currency bloc on Tuesday.
Euro zone inflation is expected to ease to 2.1% in May from 2.2% in April, according to economists polled by Reuters.
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Reeves rules out raids on the big three taxes. Here's what she could target instead
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There is a growing consensus that taxes will be raised yet again in the autumn Budget as the Chancellor battles low growth and higher defence spending while being restricted in how much she can borrow. Tim Stovold, of accountancy firm Moore Kingston Smith, said the manifesto commitment not to increase the rates of income tax, National Insurance and VAT had 'deprived the Chancellor of the levers that could normally be pulled to collect more tax'. Now that Reeves has ruled out raising the three main contributors to the Treasury's coffers, where will her axe fall? Angela Rayner, the Deputy Prime Minister, made a series of suggestions in a leaked memo, including reinstating the pensions lifetime allowance and removing more inheritance tax reliefs, which were calculated to raise approximately £3bn in total. 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Reuters
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Polish c.banker Litwiniuk: total of 100-125 bps of cuts possible this year
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Reuters
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German government spending may take years to boost growth, Bundesbank says
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