Inflation in the eurozone accelerated to 3.2% in May

The ECB is expected to raise borrowing costs at its meeting on June 11

Annual inflation in the eurozone rose to 3.2% in May 2026, up from 3% in April, according to a preliminary estimate by Eurostat.

The energy sector posted the highest rate of price growth last month (10.9% compared to 10.8% in April), followed by the services sector (3.5% compared to 3% a month earlier), food, alcohol, and tobacco (2.0% compared to 2.4% in April), and non-energy industrial goods (0.9% compared to 0.8% in April).

Core inflation, which excludes food and energy prices, rose by 0.3 percentage points to 2.5%, exceeding analysts’ expectations and reaching its highest level in over a year.

Consumer price growth in the bloc has exceeded the ECB’s medium-term target of 2% for the third consecutive month.

Among the region’s largest economies, annual inflation in Germany stood at 2.7% in May, in France at 2.8%, in Italy at 3.3%, and in Spain at 3.6%.

Economists expect the European Central Bank to raise interest rates on June 11.

As a reminder, according to the ECB’s March forecasts, overall inflation in the eurozone is expected to average 2.6% in 2026, 2.0% in 2027, and 2.1% in 2028. Compared to the December estimates, the forecast for 2026 has been revised upward, primarily due to rising energy costs.

As reported by GMK Center, by the end of 2025, the EU’s GDP grew by 1.6% year-on-year, while the eurozone economy expanded by 1.5%. In the fourth quarter of 2025, GDP increased by 1.4% year-on-year in the EU and by 1.3% year-on-year in the eurozone.