Brussels/Frankfurt/Paris, 18 June 2024 (dpa-AFX/MIA) - Eurozone inflation accelerated in May, as initially estimated, largely driven by services cost, official data revealed on Tuesday.

The harmonized index of consumer prices rose 2.6% on a yearly basis, following the 2.4% rise in April, Eurostat reported. The rate came in line with the estimate published on May 31 and it has moved away from the European Central Bank's (ECB) 2% target.

Core inflation which strips out energy, food, alcohol and tobacco, accelerated to 2.9%, as estimated, from 2.7% in the prior month.

The highest contribution to the annual inflation came from services. Cost of services grew at a faster pace of 4.1% after a 3.7% rise. At the same time, the increase in food, alcohol and tobacco prices softened to 2.6% from 2.8%.

The annual growth in non-energy industrial goods prices weakened to 0.7% from 0.9%.

By contrast, energy prices gained 0.3%, reversing a 0.6% fall.

The harmonized index of consumer prices posted a monthly growth of 0.2% each in both the euro area and all of the 27 countries comprising the EU.

EU inflation rose slightly to 2.7% annually in May from 2.6% in April. A year earlier, inflation was 7.1%. Early this month, the ECB lowered its interest rates for the first time in five years, citing an improvement in the inflation outlook.