Inflation across the euro area continued to edge higher in May 2026, reflecting persistent price pressures despite varying trends among individual member states. The latest figures indicate that inflation increased on both a euro area and European Union level, with notable differences in price growth across countries and sectors.
The annual inflation rate in the euro area climbed to 3.2 percent in May 2026, compared with 3.0 percent recorded in April. Over the same month last year, the inflation rate stood considerably lower at 1.9 percent. Across the wider European Union, annual inflation also accelerated, reaching 3.3 percent in May after registering 3.2 percent a month earlier. In May 2025, the corresponding EU inflation rate was 2.2 percent. The latest data were released by Eurostat, the statistical office of the European Union, providing an overview of price developments across the bloc.
National differences
Inflation levels continued to vary significantly among EU member states during May. Sweden recorded the lowest annual inflation rate at 1.1 percent, followed by Denmark and Czechia, where inflation measured 1.8 percent in both countries. At the opposite end of the scale, Romania posted the highest annual inflation rate at 9.7 percent, while Bulgaria followed with 6.3 percent and Lithuania with 5.1 percent. Compared with April 2026, annual inflation eased in eleven member states but increased in sixteen others, highlighting differing inflation dynamics across the European Union.
Main drivers
Within the euro area, services remained the largest contributor to annual inflation in May 2026, adding 1.61 percentage points to the overall rate. Energy was the second-largest contributor, accounting for 0.98 percentage points. Food, alcohol and tobacco added 0.36 percentage points, while non-energy industrial goods contributed a further 0.23 percentage points, with all four categories exerting upward pressure on the euro area’s annual inflation rate.
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