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Euro zone inflation hits new record of 3.7%

Rising oil prices - Euro zone inflation pushed upwards
Rising oil prices - Euro zone inflation pushed upwards

Inflation in the euro zone hit a new record in May, climbing to 3.7% over 12 months, amid soaring oil prices, according to the EU's Eurostat data agency.

The 12-month inflation rate reached the highest level since the launch of the euro back in 1999, and surpassed a first estimate of 3.6% provided by Eurostat at the end of last month. The May figure was up from 3.3% in April.

Meanwhile, annual inflation in the full 27-nation European Union rose to 3.9% in May from 3.6% the previous month.

Recent record oil and food prices have pushed inflation higher, putting additional strain on consumers and businesses already struggling with slowing economic growth.

Fisherman and truckers have been venting their anger at the high cost of living for about a month with blockades and strikes, and even inflicted minor damage on the very walls of the EU's  institutions in Brussels.

The increase to 3.7% in May brought euro zone inflation even further away from the European Central Bank's comfort zone, which it defines as annual consumer price growth of close to but  less than 2%.

The figures also complicate the ECB's task of keeping inflation under control in the face of an increasingly downbeat outlook for  the euro zone economy.