Inflation returns as food costs rise

The eurozone returned to inflation in May with a higher- than-expected increase in consumer prices after five months of falls and stagnation, due to rising food costs and the waning impact of cheap energy.

The European Union’s statistics office Eurostat said yesterday that consumer prices in the 19 countries sharing the euro rose 0.3% year-on-year last month after a flat reading in April, beating market expectations of a 0.2% increase.

The Eurostat estimate does not contain monthly data, but the annual data showed that more expensive unprocessed food and services had the biggest upward impact on the overall index.