Eurozone inflation leaps 2.5%
Eurozone inflation jumped to 2.5% in May as a result of the oil price rise, the European Central Bank (ECB) said today.
However, the ECB predicted inflation throughout Europe is set to fall below 2% in 2005 despite the volatility of oil prices.
The medium-term outlook for inflation remains favourable and this is why it kept interest rates unchanged at its meeting last week, the ECB said today in its monthly bulletin for June.
It also said that it will remain vigilant over risks to price stability.
The ECB has faced criticism in recent weeks from politicians who want it to do more to stimulate economic activity - growth and jobs - in the region.
