EU diesel and gasoline prices surge in May, fueling inflation concerns

Sharp rises in European fuel costs are driving the eurozone's fastest annual inflation acceleration in over a year, complicating the ECB's outlook.

By Handelsavisen Newsroom · Automated 2026-06-22 13:45 UTC · 1 min read

Diesel and gasoline prices in the European Union jumped significantly in May, with diesel up 29% and gasoline rising 16% year-on-year.

The surge in fuel costs is a primary driver behind the eurozone's consumer price index accelerating to 3.2% for the month, marking the sharpest annual increase in more than a year.

The data, reported by Portuguese financial outlet Jornal Económico, underscores the persistent pressure on European households and businesses from energy volatility.

The data, reported by Portuguese financial outlet Jornal Económico, underscores the persistent pressure on European households and businesses from energy volatility.

The jump in fuel prices has outpaced broader inflation expectations, adding weight to concerns that core inflation may remain sticky despite previous monetary tightening efforts.

This development complicates the policy landscape for the European Central Bank.

With inflation accelerating rather than cooling, markets are reassessing the likelihood of near-term rate cuts.