Eurozone Inflation Accelerates in May, Exceeding ECB Target

Headline inflation in the eurozone increased to 3.2% year-on-year in May, marking its highest level since September 2023 and remaining above the European Central Bank's 2% target. Energy prices surged due to Middle East supply issues, and core inflation also rose to 2.5%. This acceleration strengthens the likelihood of an interest rate hike by the ECB at its upcoming meeting.