Inflation in the euro zone’s four largest economies remained above the European Central Bank’s 2% target for a third consecutive month in May, preliminary data showed on Friday.
France reported inflation of 2.8%, up from 2.5% in April. Italy’s inflation rate climbed to 3.2% from 2.7%, while Spain’s rate held steady at 3.2%. German states that have reported data so far, including Bavaria and Baden-Wuerttemberg, showed declining inflation rates. Germany implemented a fuel discount for May and June to offset higher petrol prices.
Spain and Italy both recorded strong increases in transportation and entertainment prices. France saw a 4.1% rise in fresh food costs and a slight increase in services inflation.
Oil prices have declined since late April, with Brent crude selling for $92 per barrel compared to $118 at the end of April. Prices remain above the approximately $70 per barrel level seen before the war between the United States and Iran.
Euro zone-wide data scheduled for release on Tuesday is expected to show headline inflation at 3.3% in May. Core inflation, which excludes energy, food, alcohol and tobacco, is forecast at 2.4%.
Italy’s underlying inflation rose to 1.8% from 1.6%, while Spain’s increased to 2.9% from 2.8%.
Source: Investing.com
