Eurozone inflation rises to 3.2 percent in May

Eurozone consumer price inflation reached 3.2 percent in May, according to a new estimate from statistics body Eurostat. The figure rose from 3 percent in April and marks the highest reading since September 2023. Underlying price pressures remained strong.

Service inflation and wage growth continued, businesses passed on higher costs, and global instability lifted energy and transport expenses, further straining supply chains. The European Central Bank now faces increased likelihood of raising interest rates by 0.25 percentage points at its next meeting.

Earlier expectations had pointed toward possible policy easing later in the year to support economic growth.

Mortgage approvals climbed to a 15-month high of 65,945 in April, up from 63,979 in March. Gross mortgage lending reached its second-highest level since March 2025. Household borrowing showed resilience despite geopolitical uncertainty and tighter financial conditions. The housing market has held up better than broader economic indicators suggested.