Inflation in Germany runs faster than expected in May. The preliminary estimate released by Destatis shows a monthly variation of 0.9% and an acceleration to 7.9% per year (in April it was 7.4%). The expectations were for + 0.5% monthly and + 7.5% annually. The harmonized data shows growth of 1.1% monthly and 8.7% annually.
“Energy prices, in particular, have risen considerably since the beginning of the war in Ukraine and have had a considerable impact on the high rate of inflation. Energy prices rose 38.3% annually in May. Food prices also increased above average (+ 11.1%). Large price increases in the upstream stages of the economic process have an upward effect on prices. Another factor with an upward effect on prices is the disruption in supply chains caused by the Covid-19 pandemic »explains the statistics office. Which points out: “An inflation rate similar to that of May 2022 was last recorded in Germany in the winter of 1973/1974, when also the prices of mineral oils had risen sharply as a result of the first oil crisis”.
In Spain inflation in May + 8.5%, peak since ’95
Inflation accelerates in May in Spain beyond economists’ expectations. According to preliminary data released by the Spanish statistical office Ine, in May consumer prices increased by 0.8% monthly and 8.5% on an annual basis, more than the 8.1% increase forecast by economists. . Spain’s annual inflation rate had risen to 8.3% in April. The harmonized data shows an acceleration to 8.7% on an annual basis. The rise in consumer prices was driven by higher fuel and food and soft drink prices, Ine said. Core inflation, which excludes volatile items such as food and energy, rose to 4.9% in May from 4.4% in April. This is the highest figure since October 1995, according to Ine data.
