Inflation in the eurozone rose further in May to 2 percent year-on-year, from 1.6 percent in April.
This was reported by the European statistical office Eurostat based on a preliminary estimate. Higher energy prices, in particular, are driving inflation.
As a result, inflation has risen to its highest level since October 2018. Prices are also rising in the services sector as the economy is increasingly reopening and consumer demand picks up.
Industrial goods have also become somewhat more expensive. Excluding the fluctuating prices for food, energy and tobacco, inflation was 0.9 percent. That was 0.7 percent in April.
Inflation in the euro area is now slightly higher than the European Central Bank (ECB) target of almost 2 percent. Rising inflation has recently caused unrest in the stock markets as central banks may increase interest rates more quickly as a result.
Central bankers have said the higher inflation is likely to be temporary as the economy recovers strongly from the corona crisis.
