Eurozone Inflation Rises to 3.2 Percent as Energy, Services Costs Climb
The figures add pressure on the European Central Bank ahead of its June 11 rate decision, with markets pricing in another quarter-point increase.
TL;DR
- Eurozone inflation rose unexpectedly in May.
- Higher energy prices and increased services costs were the main drivers.
- Energy inflation reached 10.9% annually.
- Services inflation increased to 3.5%.
- Underlying inflation (excluding energy and food) rose to 2.5%.
- European manufacturers are facing renewed cost pressures.
- Concerns exist that inflation may remain above the ECB's target.