Eurozone inflation was higher than expected in May, data showed yesterday, as consumer prices started rising again after five months of falls and stagnation despite a continued strong drag on the index from cheaper energy.

The European Union’s statistics office Eurostat said consumer prices in the 19 countries sharing the euro rose 0.3 per cent year-on-year last month after a flat reading in April, beating market expectations of a 0.2 per cent increase.

The Eurostat estimate does not contain monthly data, but the annual data showed that more expensive unprocessed food and services had the biggest upward impact on the overall index.

Excluding the volatile energy prices, which were five per cent lower in May than 12 months earlier, consumer prices rose 1.0 per cent. Excluding energy and unprocessed food – or what the European Central Bank calls core inflation – prices were up 0.9 per cent, accelerating from 0.7 per cent in April.

The inflation rebound could mean that the ECB’s sovereign bond buying programme, aimed at injecting more cash into the economy to prevent deflation and started in March, has brought rapid results.