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May 27 Reuters European stocks were subdued on Monday, with several major markets closed and investors taking a cautious stance ahead of key inflation data from the United States and Europe later this week.

The panEuropean STOXX 600 index was up 0.1 at 0804 GMT. With the U.S. and UK markets closed on Monday, trading activity was light across the board.

Investors are awaiting May consumer prices data for the euro zone later this week to gauge the European Central Bank39;s ECB path for interest rates ahead of a policy meeting next week.

The central bank looks set to start easing interest rates in the upcoming meeting with a 90 probability and softer inflation data could help seal the June rate cut. 0ECBWATCH

Energy prices have been contained and there is not much reason for the European inflation to show an unexpectedly upward print, said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

If inflation is as expected, this week39;s data will most probably alter the expectations beyond June rather than the June meeting itself, Ozkardeskaya added.

A survey showed German business morale stagnated in May, falling short of a forecast for improvement. The German economy is gradually working its way out of the crisis, the report said.

The benchmark German index DAX was up 0.12.

Meanwhile, ECB…