Greek inflation rises to 5.4 pct in May

Greece's statistics agency says inflation in the debt-ridden country stood at 5.4 percent on the year in May, a sharp increase as the government implements austerity measures that include higher taxes on consumer goods.

The rise accelerated from a 4.8 percent yearly gain in April.

The statistics agency's figures released Tuesday show inflation was fueled by spikes in prices on alcohol and tobacco products, which jumped by 16.9 percent compared to May 2009, and a 20.3 percent increase in transportation costs.

The government sharply raised taxes on alcohol, tobacco and fuel this year, as part of a package of austerity measures that released euro110 billion ($130 billion) in loans from the International Monetary Fund and other European Union countries that use the euro.