Due to the Iran war Inflation in the eurozone rises to 3.2 percent in May
The oil price shock as a result of the Iran war also fueled inflation in the eurozone in May. Year-on-year, consumer prices rose by 3.2 percent, according to an initial estimate by the Eurostat statistics office in Luxembourg.
02.06.2026, 12:14
02.06.2026, 12:32
SDA
In April, the inflation rate was still at 3.0 percent. This puts the inflation rate above the target of the European Central Bank (ECB), which is aiming for an inflation rate of two percent in the eurozone in the medium term.
The central bank is therefore under pressure to react. The financial markets are expecting the ECB to raise key interest rates for the first time this year when it decides on June 11. The deposit rate, which is important for savers and banks, currently stands at 2.0 percent.
ECB President Christine Lagarde recently emphasized that the central bank is prepared to act if necessary.
"Inflation is likely to remain above 3 percent for many months to come unless the Strait of Hormuz is opened quickly, contrary to expectations," says Commerzbank chief economist Jörg Krämer. The fact that, according to surveys, more and more companies are passing on the increased energy costs to their customers also points to persistently high inflation.
"The ECB has no choice but to raise its key interest rates at next week's meeting. It will probably raise them again after the summer break."
Energy prices shoot up with war
Inflation in May was driven by a sharp rise in energy prices, which increased by 10.9% year-on-year. Services became 3.5 percent more expensive, while prices for food and luxury foods rose by 2.0 percent.
Higher key interest rates from the ECB would make loans more expensive for consumers and companies, which could curb demand and dampen inflation. However, higher interest rates are a burden for the already weak economy in the eurozone, which is suffering from the consequences of the Iran war.
