Eurozone inflation hits 3.2% as Middle East war drives energy prices

Annual inflation in the eurozone accelerated to 3.2% in May, driven by a 10.9% surge in energy costs linked to ongoing Middle East military tensions, official figures showed on Tuesday.

The reading marked the fourth consecutive monthly gain since February, when inflation began climbing again. Core inflation excluding energy stood at 2.4% for the month, according to Eurostat data.

Supply chain pressures

The surge follows the US-Israeli war with Iran that began February 28, severely disrupting global oil markets. Tehran's closure of the Strait of Hormuz — a vital shipping chokepoint — and attacks on energy plants have driven prices upward.

Supply constraints in the Persian Gulf have pressured European import costs across the 20-member currency union. The trend has reversed earlier declines that had moderated consumer prices throughout 2024.

Country breakdown

Inflation rates diverged across the bloc, with Bulgaria recording the highest rate at 6.3%. Lithuania followed at 5.1% and Greece at 5%, according to the statistical office.

Other states posted more moderate increases, though the regional average was pulled upward by energy costs. The figures underscore the uneven impact of external supply shocks across eurozone economies.