Institution: Eurozone service sector inflation rebound confirms internal price pressures.

Dirk Schumacher from Deutsche Bank Research stated in a report that the combination of energy price shocks and ongoing high internal price pressures paves the way for the European Central Bank to raise interest rates this month. The Eurozone inflation rate rose from 3.0% in April to 3.2% in May. The continued increase in energy prices will push inflation to its highest level since September, but despite this being widely expected, service sector inflation has also increased from 3.0% to 3.5% in May. He stated that the rebound in service sector inflation confirms that the decrease in service sector inflation in April was solely due to calendar effects.