German government officials said there has been recent diplomatic progress on Iran.

Germany May CPI final MoM -0.2% (exp -0.2%; prev -0.2%)

Capital Economics economist Ruth Gregory said in a note that while July or September hikes cannot be ruled out, the Bank of England is likely to keep policy rates unchanged this year. April real GDP contracted, suggesting the strong start to the year is losing momentum and should limit inflationary pressure. Rising energy prices are eroding real household incomes; she expects the economy to stagnate this quarter and next. Services are bearing the main impact from the Iran war, and industrial production may weaken from May as the temporary inventory-led boost reverses. Conditions for sustained high inflation are not in place.