Brussels, 18/06/2001 (Agence Europe) - The rate of inflation in the euro zone reached the record level of 3.4% in May, its highest level since 1993. According to figures published on Monday by the European Community's Statistical Office, Eurostat, the annual rate of inflation of the euro zone went from 2.9% in April 2001 to 3.4% in May, whereas, just one year before, it was at 1.9%. The annual inflation rate of the European Union went from 2.6% in April to 3.1% in May. These figures do not seem to come as a surprise to Commissioner Pedro Solbes' services, responsible for economic and monetary affairs. "The rise in rates, to the exclusion of volatile factors, is expected", declared Gerassimos Thomas, spokesman for Mr Solbes. In a press release, the Commission considers that "the May data are not welcome" but it is "comforting to observe that the upward pressure on prices is attributed almost exclusively to rises in the energy and unprocessed food sectors". Gerassimos Thomas explained that the price of domestic heating energy has increased by over 17% and that of transport fuel has risen 8%, while electricity prices, with 2.1% inflation, has had a downward impact. In the unprocessed food product sector, the price of meat has increased 9.2%, vegetables 11.3% and fruit 9.4%, while processed food products have pushed prices downward. The services sector has also had an impact downward. The Commission sought to be reassuring by specifying that "medium-term inflation prospects remain good particularly as inflationary pressures emerging from the demand side are under control". However, it warns that the "potential renewed upward pressure in oil prices during the second half of the year requires that we remain vigilant". It concludes that a fall below the 2% level this year is "unlikely". Most analysts share this opinion on the whole, considering that inflation has reached a maximum and should tend to fall in June. The figure remains well beyond the 2% threshold set by the European Central Bank (ECB) but forecasts on a reduction of key rates by the ECB are going from strength to strength, with some experts tabling on a reduction in rates by September. The highest annual inflation rates were noted in the Netherlands (5.4%), Portugal (4.9%) and Spain (4.2%). The lowest rates were recorded in the United Kingdom (1.7%), France (2.5%) and Denmark (2.8%).