Euro area CPI edges past forecasts in May as energy prices jump

Price pressures in the euro area edged past forecasts last month led by a jump in energy costs and in the prices for unprocessed food.

According to a preliminary estimate from Eurostat, in seasonally adjusted terms the euro area's consumer price index advanced at a month-on-month pace of 0.3%.

The annual rate of gains meanwhile picked up from 1.6% to 2.0%.

Economists had penciled in gains of 0.2% and 1.9%, respectively.

In comparison to April, the biggest increases in prices were recorded in Energy and Unprocessed foods, where inflation rose by 0.7% and 0.6%.

Year-on-year on the other hand, the largest price gains were recorded in Energy and Services, where costs increased by 13.1% and 1.1%.

Using the European Central Bank's definition of 'core' prices, which excludes those for energy, food, alcohol and tobacco, CPI advanced at a clip of 0.2% on the month and by 0.9% versus a year ago, just as expected.