jordan pulse -

Inflation in the euro zone accelerated in May, driven by higher energy prices linked to the conflict in the Middle East, according to official data.

Data from the European Union's statistics agency, Eurostat, showed that annual consumer price inflation rose to 3.2% last month from 3.0% in April, remaining well above the European Central Bank's 2% target and marking the third consecutive monthly increase.

Core inflation, which excludes more volatile items, increased to 2.5% in May from 2.2% in April, exceeding analysts' forecasts of 2.4%, according to estimates compiled by Bloomberg and FactSet.

Energy price inflation rose to 10.9% in May from 10.8% in April, while services inflation climbed to 3.5% from 3.0% over the same period.

The European Commission expects inflation to remain above the European Central Bank's target this year. The European Union has also sharply revised its inflation forecast for the 21-country euro zone to 3.0% for the year, compared with an earlier projection of 1.9%.

//Petra// AF