Consumer prices rose 0.76% m/m in June compared to a 0.13% rise in May. The print reflected stronger increases in prices for food and non-alcoholic beverages, leisure and culture, housing, water, electricity, gas and other fuels. In addition, transport prices have skyrocketed.
Meanwhile, inflation rose to 7.4% in June (May: 6.8%). This is the highest figure since at least January 1996. Average annual inflation rose to 4.8% in June from 4.3% in May. Finally, harmonized consumer price inflation rose to a record 10.3% in June (May: 9.1%).
EIU analysts added:
“Persistent supply chain problems and high energy prices in Europe have contributed to higher prices. We expect inflation to accelerate to 8.2% in 2022 as supply pressure intensifies due to material shortages and rising fuel costs.”
FocusEconomics Consensus Forecast experts predict harmonized inflation to average 7.1% in 2022. In 2023, they forecast harmonized inflation at an average of 2.8%.