The data confirmed by Eurostat quadruples that of a year ago and forces the European Central Bank (ECB) to adopt more aggressive monetary policy
There is no option. The latest inflation figures in the eurozone published by Eurostat show that the European Central Bank (ECB) has no choice but to be much more aggressive in its monetary policy. Perhaps much more than the 25 basis points that will mark the monetary body’s first rate hike in 11 years in July.
Eurozone inflation rose to 8.1% in May, from 7.4% in April and March. It is the highest price increase in the region in the entire historical series. And it means multiplying the 2% increase in May 2021 by four.
According to the municipal statistics office, the price increase in the eurozone in the fifth month of 2022 reacted to the 39.1% year-on-year increase in the energy price, which accelerated from 37.5% in April, while the increase in the price of fresh food in May was 9% year-on-year, two tenths less than the previous month.
Excluding the impact of energy from the calculation, year-on-year inflation in the eurozone was 4.6% in May, compared to 4.1% in the previous month, while the effect of fresh food prices, alcohol and tobacco, core inflation reached a record high of 3.8%, compared to 3.5% in April.
According to data confirmed on Friday, annual yields in the European Union as a whole have risen to a record high of 8.8% (down from 8.1% in April). Just a year ago, the rate for Twenty-seven was 2.3%.
Of the 27 countries, inflation accelerated in May in all countries except the Netherlands, where it decreased from 11.2% in April to 10.2%. The largest price increases in the EU were registered in Estonia (20.1%), Lithuania (18.5%) and Latvia (16.8%), while the least strong increases were registered in Malta and France (both 5.8% ) and Finland (7.1).
In addition to the record inflation rate of 5.8% recorded in France, prices also rose at a record pace in Germany in May, with an annual increase of 8.7%, while in Italy, the euro’s third-largest economy harmonized inflation climbed to 7.3%.
In the case of Spain, harmonized inflation stood at 8.5% in May, compared to 8.3% in April, reducing the unfavorable price differential relative to the euro area average to four-tenths.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
