European Union data showed consumer prices in the euro zone rose 2.6% in May from a year earlier, up from a 2.4% increase in April and above the European Central Bank's 2% target.
The ECB is expected to continue cutting interest rates next week, despite a bigger-than-expected increase announced by the European Union's statistics agency Eurostat.
The central bank has been raising interest rates aggressively since July 2022 amid rising tensions over Russia's invasion of Ukraine, amid a surge in inflation after Russia cut gas supplies to Europe and as the lingering effects of the coronavirus pandemic continue to cripple supply chains for parts and raw materials.
As inflation tapers off its peak, central banks are looking to cut interest rates again to spur growth, but observers say the latest data suggests any cuts are likely to be very gradual.
What did Eurostat say?
Core inflation, which does not include prices of energy, food, alcohol and tobacco, rose to 2.9% in May from 2.7% in April.
The services sector recorded the largest price increase at 4.1% in May, up from 3.7% in April, while food, alcohol and tobacco prices fell to 2.6% in May from 2.8% in April.
However, energy prices rose again by 0.3% in May after recording a 0.6% decline in April.
The lowest inflation rate in May was in Latvia at 0.2%, followed by Finland at 0.5%, while Belgium had the highest, at 4.9%.
Prices in Germany rose 2.4% in May from a year earlier, according to provisional data released on Wednesday by the Federal Statistical Office (Destatis).
tj/ab (AP, AFP, Reuters)
