Eurozone Inflation Accelerates to 3.2% in May, Boosting ECB Rate Hike Expectations

Eurozone inflation climbed to 3.2% year-over-year in May 2026, marking its highest point since September 2023 and exceeding the European Central Bank's 2% target. This increase, fueled by a significant rise in energy prices and core inflation, strengthens the likelihood of a 25 basis-point interest rate hike from the ECB. The central bank's next meeting is scheduled for June 11.