At a time when data in the US show signs of peak inflation, in Europe inflationary pressures are intensifying at a steady pace, as confirmed today by Germany.
In particular, according to the country’s authorities, the harmonized Consumer Price Index ran at a rate of 8.7% in May, showing a strong increase from 7.8% in April, while it significantly exceeded the estimate of analysts at Bloomberg who expected a slight increase. at 8.1%.
Respectively, on a monthly basis, harmonized prices in Germany increased at a rate of 1.1%, compared to 0.7% the previous month, while analysts expected a slowdown to 0.5%.
Excluding adjustment at European level, the German Consumer Price Index showed an annual increase of 7.9% in May, from 7.4% in April, also well above the estimate for an increase of 7.6%.
At month level, prices in the country increased by 0.9% after that by 0.8% in April, while analysts expected a slowdown to 0.5%.
The annual measurement is the highest recorded by the German federal authorities since reunification and the highest in the country for 49 years, since 1973 and the oil crisis.
As the data showed, energy prices increased by 38.3% in May compared to the same month last year, while food prices increased by 11.1%.
Speaking to Reuters, Berenberg Bank chief economist Holger Schmiding said there was still some inflationary pressure on products affected by global supply chain and food disruptions, with the situation expected to ease in the autumn.
In any case, the data on inflation in Europe’s largest economy come ten days before the crucial ECB meeting at which bank officials are expected to announce the completion of the asset purchase program and confirm plans to raise interest rates. in July, for the first time in over a decade.
It is noted that some ECB officials have referred to the prospect of a 0.5% interest rate hike (such as the Fed), instead of the 0.25% unit most support.
Earlier today, it was reported that inflation followed a similar trend in Spain, running at a rate of 8.7% in May from 8.3% in the previous month, far exceeding analysts’ estimates that the price index consumer in the country would remain unchanged at 8.3%.
Source: Capital
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