Euro Zone Inflation Climbs To 3.2% As Iran War Keeps Energy Prices Elevated

The increase comes as European economies continue to grapple with higher oil and natural gas prices following the outbreak of the U.S.-Iran conflict, which has disrupted energy markets and increased concerns about supply stability. (Credit: Michael M. Santiago/Getty Images)

The euro zone's annual inflation rate rose to 3.2% in May, marking another increase in consumer prices as elevated energy costs continued to ripple across the region.

The latest flash estimate showed inter-annual inflation accelerated from 3% in April, leaving price growth well above the European Central Bank's 2% target. Energy remained the biggest contributor to inflation, with prices rising 10.9% year over year in May, according to preliminary data released by Eurostat and reported by CNBC.