Eurozone inflation hit a new record in May, challenging the European Central Bank’s view that gradual interest rate hikes from July onwards will be enough to tame the rise in prices.
Inflation in the 19 countries sharing the euro accelerated to 8.1% in May from 7.4% in April on a yearly basis, beating expectations of 7.7% with a general increase in prices, indicating that it is no longer just about energy.
Prices have risen sharply across Europe over the past year, initially due to supply chain issues following the pandemic, then with Russia’s war on Ukraine, suggesting a new era of rapid price growth is now sweeping a decade. of ultra-low inflation.
While inflation is now four times the ECB’s 2% target, central bank officials may be more concerned about the rapid rise in underlying prices, which indicates that what was once seen as a transitory jump in prices is now coming to an end. rooting.
Inflation excluding food and energy, closely watched by the ECB, accelerated from 3.9% to 4.4% on an annual basis, while an even narrower measure, which also excludes alcohol and tobacco, accelerated from 3.5% in April to 3.8% in April.
Source: CNN Brasil
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