For 17 European countries, the rate of inflation eased from April to May. The drop from 2.8% to 2.7% was unexpected for the European Central Bank, but it was not enough for them to forgo the coming interest rate hike.

Economists are suggesting that a plunge in high oil prices was the main factor for the fall in inflation. Some European nations are experiencing a shaky economic situation, especially Greece, Portugal and Ireland. In order to maintain a somewhat stable inflation rate, bank President, Jean-Claude Trichet, claims ECB Chief Authority, is determined to keep inflation from getting out of control.

Euro nations are struggling with debt crisis. Greece is experiencing one of its worst financial nightmares in years. However, Germany is enjoying a stable, strong financial growth due to exports and investment in new equipments.

ECB Executive Board member, Juergen Stark, claims that he will make sure the rate of inflation is kept as stable as possible. "We are carefully eying the current development of prices and the risks to price stability”. However, there is so much that a person can do when it comes to the rate of inflation. It is hard to predict and hard to control.