Economists at Bank of America and Goldman Sachs forecast inflation will shoot up to more than 3.5% by year’s end.

Germany's harmonized consumer inflation fell to 2.1% in May, according to preliminary data. The rate is nearing the European Central Bank's 2% target. Economists polled by Reuters had been expecting the reading to come in at 2%.

Officials at the Federal Reserve have adopted a wait-and-see approach to policy moves amid extreme uncertainty about the economic outlook.