The buildings of the banking district are reflected in the river Main as the sun sets in Frankfurt, Germany, Monday evening, May 28, 2018. (AP Photo/Michael Probst)

Eurozone inflation jumps higher on oil price spike

May 31, 2018 - 4:02 am

BRUSSELS (AP) — Official figures show that a big jump in energy prices has pushed inflation across the 19-country eurozone back to the European Central Bank's goal in May.

Eurostat, the European Union's statistics agency, said consumer prices were up by an annual rate of 1.9 percent in May, way ahead of April's 1.2 percent.

The sharp rise means inflation is now at the ECB's goal of just below 2 percent.

The main reason behind the increase has been the sharp rise in oil prices. Energy prices, according to Eurostat, were up 6.1 percent in the year to May, more than double April's 2.6 percent.

However, underlying inflation remains benign. After stripping out the volatile items of energy, food, alcohol and tobacco, inflation only rose to 1.1 percent from 0.7 percent.

AP Editorial Categories: