Inflation in the euro zone rose slightly in May when compared to the previous month, according to figures from Eurostat, but was significantly slower than in the same period last year. Annual inflation in the euro zone was 1.4 per cent last month, 0.2 per cent higher than in April.

However this is 1 per cent lower than the figure recorded for May 2012. Inflation in the wider European Union was 1.6 per cent last month with a 0.20 per cent rise compared to April but 1 per cent lower on a year to year basis.

Both Greece and Latvia recorded annual rates of deflation in May – 0.3 per cent and 0.2 per cent respectively, while Romania had the highest inflation rate at 4.4 per cent. Ireland was near the bottom of the inflation table, with a rate of 0.5 per cent. Ireland's annual inflation rate in May 2012 was 1.9 per cent.This compares to a rate of 2.4 per cent in Britain, 1.6 per cent in Germany and 0.9 per cent in France.