FRANKFURT, Germany (AP) – Eurozone inflation rose to 2.0% in May, driven higher by rising oil prices as other inflationary pressures appeared to remain subdued.
The modest price rise in Europe compares with a much stronger jump in the US that has led to discussion about the inflationary impact of stimulus and relief policies from government spending and central banks.
The May figure for the 19 countries that use the euro currency compares with 1.6% in April, the European Union statistics agency Eurostat said in a news release Tuesday. The increase was largely driven by volatile energy prices; without those, core inflation was only 0.9%
Economists say the rise is driven by transitory factors such as the higher oil prices and the end of pandemic relief tax breaks – and therefore isn’t likely to push the European Central Bank to withdraw its stimulus policies.
ECB officials have