In May 2024, the inflation rate in the euro area increased by 2.6% compared to the same month in 2023. Thus, the inflation rate accelerated compared to April, when it was 2.4%, the lowest since November 2023. This is evidenced by preliminary data from Eurostat.
Analysts surveyed by Trading Economics had expected euro zone inflation to rise 2.5 percent year-on-year.
Core inflation, which excludes energy and food costs, accelerated to 2.9% in May (2.7% in April 2024). Energy prices rose 0.3% after falling 0.6% in April. Experts had expected core inflation to accelerate to 2.8%.
The highest annual inflation rates among EU member states in May were in Belgium (4.9%) and Croatia (4.3%), while the lowest were in Latvia (0.2%) and Finland (0.5%). Consumer prices rose by 2.8% in Germany, 2.7% in France, 0.8% in Italy and 3.8% in Spain.
Seasonally adjusted GDP for the euro area and European Union increased by 0.3% quarter-on-quarter in January-March 2024. In the fourth quarter of 2023, the euro area economy contracted by 0.1% quarter-on-quarter, while the EU economy remained stable.
The euro area's quarterly economic growth reached its highest level since the third quarter of 2022.
As previously reported by GMK Center, Fitch Ratings raised its global GDP growth forecast for 2024 by 0.3 percentage points from its previous forecast to 2.4%. The forecast for the euro area was revised down to 0.6% from 0.7%.
