The rate of annual inflation rose to 1.6% in May across the euro zone, up from 1.5% in April, official figures showed today. Euro zone inflation has risen, almost continuously, from 0.5% last November as the bloc emerges from the worst recession since the 1930s. Business and consumer confidence in Europe fell in May after having hit a two-year high the previous month, the European Union said today. The Economic Sentiment Indicator, produced by the European Commission, fell to 98.4 points in May across the 16 countries which share the euro currency, down from 100.6 points in April. Across the 27-nation European Union, the figure fell by 1.9 points to reach the neutral 100 points. Anything above 100 represents optimism and anything below indicates concern for where the economy is going.