June 17, 2022

Annual inflation in the euro area hits a record high for the seventh month in a row at 8.1% in May 2022 (April 7.4%), while the rate was 2.0% a year earlier.

Annual inflation in the European Union reached 8.8% (April 8.1%), while it was 2.3% a year earlier.

The lowest annual rates were recorded in France and Malta at 5.8% and Finland at 7.1%, while the highest were Estonia at 20.1%, Lithuania at 18.5% and Latvia at 16.8%. In comparison to April, the annual inflation only fell in one Member state and rose in twenty-six.

The largest contributors to the annual euro area inflation were Energy (+3.87 percentage points, pp), food, alcohol and tobacco (+1.59 pp), services (+1.46 pp) and non-energy industrial goods (1.13 pp).

Rising prices have been intensified over recent months by the war in Ukraine, particularly food and energy costs.

Energy costs increased by 39.2% in May (April 37.5%) and food, alcohol and tobacco prices increased by 7.5% (April 6.3%). Inflation without energy and food prices still increased from 3.5% to 3.8%. This is still below the close to 6% core inflation being experienced currently in the U.S. and the U.K.

European Central Bank President Christine Lagarde said she was anticipating a rate rise at the central bank’s meeting in July and “we are likely to be in a position to exit negative interest rates by the end of the third quarter.

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.