LONDON—The euro’s losses deepened on Tuesday after data showing eurozone inflation hit a record high in May, but expectations the European Central Bank will soon hike rates kept the single currency on track for its best monthly performance in a year.
Rising inflation is usually considered a precursor to tighter monetary policy. The ECB is wary that interest rate hikes might tip the economy into a recession, however, especially as the European Union’s plans to cut its reliance on Russian energy could push inflation even higher.
