Rachel Reeves and Donald Trump HUMILIATED as EU economy posts huge inflation win

The inflation rate in the Eurozone has fallen to 1.9%, below the European Central Bank's 2% target, for the first time in seven months. This comes as US and UK inflation remains stubbornly stuck on 2.3% and 3.5% respectively for the year to April.

In a nod to , widely expected to be inflationary, S&P Global Market Intelligence economist Diego Iscaro told the the reduction in the rate at which prices are rising in the Eurozone will "offset some of the headwinds on consumption stemming from a highly uncertain economic environment".

While European consumers may not be feeling the squeeze quite as much as they were, shoppers in the UK and US continue to battle rapidly spiralling costs. To make matters for Brits, Chancellor Rachel Reeves is highly likely to break her promise not to raise one of the big three taxes - income tax, national insurance, and VAT - according to Stephen Millard, acting director at the National Institute of Economic and Social Research.

Mr Millard argued it was "pretty much inevitable" one of those taxes will rise, after Ms Reeves' £9.9billion of fiscal headroom was eaten away by 's tariffs and her growth-suffocating policies.

Despite the gloomy outlook for millions of Brits, in recent days the pound soared in value against the dollar amid concerns that with China was about to falter. On Monday, investors and the pound strengthened 0.73% to $1.355, the highest it's been since mid-2022.

On Monday, China accused the United States of "seriously violating" the arrangement after President Trump said in a post on Truth Social that "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US".

Over the weekend, Mr Trump also revealed plans to ramp up tariffs on steel and aluminium imports from 25% to 50% on June 4. He wrote on Truth Social: "It is my great honor to raise the Tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before."