BRUSSELS, June 2 (Xinhua) -- Annual inflation in the eurozone is expected to reach 3.2 percent in May, up from 3.0 percent in April, the highest level in nearly three years, date released on Tuesday showed.
Energy prices remained a key driver of inflation in May, rising 10.9 percent year-on-year, slightly higher than the 10.8 percent increase in April. Services inflation rose to 3.5 percent from 3.0 percent a month earlier, according to a flash estimate by Eurostat, the statistical office of the European Union.
Among the eurozone's largest economies, Germany's annual inflation rate is expected to be 2.7 percent in May, down from 2.9 percent in April. France's inflation is estimated to rise to 2.8 percent from 2.5 percent, Italy's to 3.3 percent from 2.8 percent, and Spain's to 3.6 percent from 3.5 percent. Germany was the only one of the four major economies to report a lower inflation rate than in the previous month, according to Eurostat data.
The European Commission said in its Spring Economic Forecast that the energy shock was pushing up inflation and weighing on economic growth.
Analysts said energy prices remained a major factor behind price increases in the eurozone, while the simultaneous rise in services inflation and core inflation suggested that underlying price pressures had not fully eased.
Carsten Brzeski, global head of macro at ING Research, said the latest inflation figures support expectations of a possible interest rate increase by the European Central Bank in the near term. However, he noted that the current macroeconomic environment differs from that during the 2022 energy crisis, and aggressive rate hikes are not warranted. ■
