[French Inflation Hits Over Two-Year High, Supporting ECB Rate Hike Expectations in June] Jin10 News, May 29 – French inflation has risen to its highest level in more than two years, providing support for the European Central Bank's first rate hike since 2023. Data released on Friday showed that, driven by soaring energy costs due to the war, the harmonized CPI annual rate in France, the eurozone's second-largest economy, reached 2.8% in May, up from 2.5% in April but slightly below the market expectation of 2.9%. France's data kicks off the release of inflation figures from major eurozone economies, which will help ECB officials assess the extent to which the Middle East conflict has fueled inflation and whether policy responses are necessary. The market expects price pressures in Spain and Italy to intensify further, while German inflation may ease slightly. However, inflation rates in all countries are expected to remain well above the ECB's 2% target. Eurozone-wide inflation data, set to be released next week, is expected to surpass the 3% level reached in April. Since former U.S. President Trump launched military action against Iran three months ago, ECB officials, from hawkish member Isabel Schnabel to dovish Chief Economist Philip Lane, have signaled that a rate hike may be necessary. Although the ECB chose to hold rates steady in April, meeting minutes revealed that officials had already acknowledged that some second-round inflation effects were "inevitable." The key questions remain the scope, intensity, timing, and duration of these effects.