In May, consumer prices in the eurozone rose by 2% year-on-year, surpassing the target of the European Central Bank. However, many economists believe that long-term inflationary slippage remains unlikely. This will rekindle fears among investors and savers in Northern Europe.
In April, inflation had been contained at only 1.6%. More than half of the rise in consumer prices is explained by the rebound in oil prices since last summer, with the reopening of developed economies and strong demand from Asia in particular.
But the level of inflation is now slightly above the target of the European Central Bank (ECB), whose mandate specifies that its aim is to achieve price growth below but close to 2%.
This will give new voice to opponents of the accommodative monetary policy of the institution based in Frankfurt since the beginning of the Covid crisis, and particularly to its public debt purchase program.
