Eurozone inflation rose to 3.2% year-on-year in May, up from 3.0% in April, continuing its recent upward trend.
The largest contributor was again energy inflation, which rose slightly from 10.8% in April to 10.9% in May, reflecting the continuing impact of the Iran conflict on global energy markets.
There was also early evidence that higher energy costs are feeding through to the wider economy, with core inflation rising from 2.2% to 2.5% and services inflation rising from 3.0% to 3.5%. Given the renewal of inflationary pressures, Cebr now expects the ECB to hike interest rates in the upcoming June meeting
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