Inflation in the eurozone in May reached its highest annual level since the creation of the common currency, with consumer prices rising a whopping 8.1 percent, Eurostat, the statistical office of the European Union (EU), said in a flash estimate on Tuesday.
Eurozone inflation was 7.4 percent in April.
Inflation increased across the board due to continued energy market volatility on the back of sanctions, soaring food prices and rising core inflation.
The Russia-Ukraine conflict has fueled the increase in energy prices further, becoming the main contributor to the year-on-year jump. Energy prices rose by a massive 39.2 percent (37.5 percent in April), followed by food, alcohol and tobacco (7.5 percent in May, 6.3 percent in April).
According to Eurostat, the core consumer price index, which excludes food and energy prices (considered to be more volatile and susceptible to price fluctuations), rose 3.8 percent year-on-year in May, after an increase of 3.5 percent the previous month.
The eurozone’s high inflation rate is putting pressure on the European Central Bank (ECB), which is set to raise interest rates by 25 basis point increments in July and September. ■