Harmonized inflation edges up to target in May

Latest reading: Harmonized inflation inched up to 2.0% in May from April’s 1.9%. May's figure was the highest inflation rate since October 2023 and overshot the Euro area average slightly but was in line with the ECB’s 2.0% target. Looking at the details of the release, the uptick was broad-based: Prices for food, housing, hospitality and recreation all rose at a faster pace. Still, a sharper fall in transport costs capped the acceleration. As a result, annual average harmonized inflation rose to 1.4% in May (April: 1.3%). Meanwhile, consumer price inflation was stable at April's 0.5% in May. Finally, harmonized consumer prices rose 0.08% in May over the previous month, slowing down from the 0.15% increase logged in April. May's result marked the softest rise in prices since December 2024.

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