- Eurozone inflation arrives at 8.1% YoY in May, meets estimates.
- Monthly HICP in the bloc rises by 0.8% in May.
- EUR/USD is keeping its range above 1.0500 on the expected Eurozone data.
Eurozone’s Inflation surged 8.1% in May, on an annualized basis, according to Eurostat’s final reading of the Eurozone Harmonised Index of Consumer Prices (HICP) report for the month.
The reading disappointed expectations of 8.1% while against the 8.1% previous. Core figures rose by 3.8%, meeting the 3.8% market estimates and 3.8% last.
The bloc’s HICP rose by 0.8% versus 0.8% expected and 0.6% booked in April while the core HICP numbers came in at 0.5% versus 0.5% expected and 0.5% seen previously.
Key details (via Eurostat):
The lowest annual rates were registered in France, Malta (both 5.8%) and Finland (7.1%). The highest annual rates were recorded in Estonia (20.1%), Lithuania (18.5%) and Latvia (16.8%). Compared with April, annual inflation fell in one Member State and rose in twenty-six.
In May, the highest contribution to the annual euro area inflation rate came from energy (+3.87 percentage points, pp), followed by food, alcohol & tobacco (+1.59 pp), services (+1.46 pp) and non-energy industrial goods (+1.13 pp).
FX implications:
At the press time, EUR/USD is trading at 1.0525, lower by 0.22% on the day.