Eurozone inflation to hit 0.3% in May

Eurozone inflation is expected to rise to 0.3 per cent in May, an increase of 30 basis points from the 0 per cent figure recorded in April, according to EU statistics agency Eurostat.

The return to inflation, which follows five months of falling or stagnant prices, follows a 1.3 per cent increase in the price of services, up from 1 per cent in April.

Food, alcohol and tobacco prices also rose 1.2 per cent in May, compared to 1 per cent a month earlier, while energy price deflation contracted from -5.8 per cent in April to -5 per cent in May.

News of rising prices in the Eurozone comes less than a month after the UK recorded a year-on-year fall in prices for the first time since records began.

Office for National Statistics data shows consumer prices index inflation fell by 0.1 per cent in the year to April 2015, compared to no change in the year to March 2015.