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Eurozone inflation exceeds target for first time since 2018

Eurozone consumer price inflation surpassed the central bank's target for the first time in more than two years in May, final data from Eurostat showed on Thursday.

Eurozone consumer price inflation surpassed the central bank’s target for the first time in more than two years in May, final data from Eurostat showed on Thursday.

Consumer price inflation climbed to 2.0 per cent from 1.6 per cent in April. The rate came in line with the flash estimate published on June 1.

The actual inflation was the fastest since 2018. The European Central Bank targets inflation “below, but close to” 2 per cent.

The increase in inflation was largely driven by a 13.1-per-cent rise in energy prices.

Food, alcohol and tobacco prices gained 0.5 per cent and services costs advanced 1.1 per cent. Prices of non-energy industrial goods were up 0.7 per cent.

Core inflation, which excludes prices of energy, fresh food, alcohol and tobacco, accelerated to 1.0 per cent from 0.7 per cent in April. The rate was revised up from 0.9 per cent.

Compared to the previous month, consumer prices rose 0.3 per cent in May, in line with the flash estimate.

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