The organization points to runaway inflation of 9.6% in May, the highest since 1988, driven by higher food prices (12.6%) and energy (35.4%)
Prices remain unstoppable around the world and the active conflict in Ukraine is only slowing the situation. In just one year, food prices in the OECD as a whole have risen by 12.6% and energy prices have soared by 35.4%. The organization warns of skyrocketing inflation, which reached an average of 9.6% in May, a level not seen since August 1988, 34 years ago.
The organization’s data released Tuesday shows that global inflation continues to rise from 9.2% in April and has risen in all of the group’s countries except Colombia, Japan, Luxembourg and the Netherlands. Ten of the 34 OECD countries even recorded double-digit CPI rates in May, with Turkey (73.5%), Estonia (20%) and Lithuania (18.9%) leading the way.
In addition, core inflation – excluding the price of fresh food and energy – rose to 6.4% in the OECD as a whole, two-tenths more than a month earlier.
If only the inflation of the countries that are part of the European Union (EU) is taken into account, the percentage drops to 8.8% in the month of May, with Spain practically at the average (8.7%), but higher than neighboring countries such as the United Kingdom (7.9%), France (5.2%), Germany (7.9%), Italy (6.8%) and Portugal (8%).
In Spain, energy prices shot up by 34.2% in May and food prices by 11%. The INE’s first calculation indicates that inflation rose to 10.2% in June, the highest level in 37 years, on the back of sharp increases in fuel and food prices. Moreover, core inflation is already at 5.5%, six tenths more than in May.
Eurostat’s preliminary estimate for June in the euro area points to the largest increase in inflation in the entire historic series, to 8.6%, while core inflation declined slightly to 3.7%. Prices rose in all countries except Germany and the Netherlands.
This data does nothing but put pressure on the European Central Bank (ECB) in light of the new cycle of rate hikes approaching. Last week, ECB Vice President Luis de Guindos warned that if this climate continues, the recession could hit as early as 2023.
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.
