Daily Management Review

Eurozone inflation hits all-time high of 8.1% in May


In May, inflation in 19 eurozone countries reached an all-time high of 8.1%, up from 7.4% in April. Energy, which increased by nearly 40% in May, was the main cause of the inflation acceleration.

According to preliminary calculations, annual inflation in 19 eurozone countries grew to an all-time high of 8.1% in May. Eurostat stated that "annual inflation in the euro area is forecast to be 8.1% in May 2022, up from 7.4% in April."

Bloomberg polled experts, who predicted that euro zone inflation will rise to 7.8% in May.

Energy carriers, which increased by 39.2% in May compared to 37.5% in April, became the main cause of inflation acceleration. Food, cigarettes and beverages prices increased by 7.5% in May, compared to 6.3% in April, non-energy industrial goods prices grew by 4.2% (compared to 3.8% in April), and services prices increased by 3.5% (against 3.3% in April).

Estonia (20.1%), Latvia (plus 18.5%) and Lithuania (plus 18.5%) had the biggest increases in consumer prices computed according to EU norms (harmonised index of consumer prices, HICP) among euro area nations (16.4% ). The HICP in Germany and France, the eurozone's economic leaders, increased by 8.7% and 5.8%, respectively.

source: bloomberg.com