Brussels — Inflation in the eurozone leapt to the ECB’s target in May, data showed on Thursday, fuelled by a huge increase in oil prices as the US decided to pull out of a nuclear deal with Iran. The EU’s statistics authority, Eurostat, said inflation in the eurozone jumped to 1.9% in May, a sharp pick-up from the 1.2% recorded in April. That puts inflation right at the European Central Bank’s (ECB’s) target of close to, but just below, 2.0%. Analysts believe higher inflation will heap pressure on the ECB to end its massive stimulus programme that has helped keep government borrowing prices in Europe at super low levels. This would be especially sensitive in heavily indebted Italy, which is hit by a political crisis and closely benefits from the ECB bond-buying programme. "The drama in Italy creates something of a headache for the ECB," said Stephen Brown, European economist at Capital Economics. "But provided that the situation remains contained, we doubt that it will prevent the E...
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