Inflation continues to run rampant throughout the world. Energy and food pricing pressures continue to elevate around the world. The effect is showing some variance by location. Germany’s consumer inflation for June slowed more than expected to 7.6% from 7.9% in May which was the highest reading since German reunification. Figures compare with market forecasts of 8%. Spain however saw annual inflation jump to 10.2% in June of 2022 from 8.7% in May, much higher than market forecasts of 9% to the highest inflation rate since April of 1985.
Germany June 22 preliminary CPI +7.6% vs +8.0% y/y expected
- German May prelim CPI +7.6% vs +8.0% y/y expected
- Prior +7.9%
- HICP +8.2% vs +8.8% y/y expected
- Prior +8.7%
- CPI m/m +0.1% vs +0.3% exp
- HICP m/m -0.1% vs +0.2% exp
Latest data released by Destatis – 30 May 2022
German States May CPI
- Saxony June CPI +7.7% vs +8.0% y/y prior
- Bavaria June CPI +7.9% vs +8.1% prior
- Hesse June CPI +8.1% vs +8.4% y/y prior
- Brandenburg June CPI +8.0% y/y Prior +8.5%
- Baden Wuerttemberg June CPI +7.1% vs +7.4% y/y prior
“Consumers will have to reckon with further increases in prices because many inputs are still scarce and wholesale prices are still increasing dramatically,” ZEW Economist Friedrich Heinemann said by email. “Surprisingly good labor-market data also indicate that the dreaded wage-price spiral could soon pick up speed.”
Negotiated wages in Germany fell by 1.8% in real terms in the first quarter, however workers in the iron and steel industry are pushing for gains of more than 8%, they’re unlikely to secure gains that fully offset the rising cost of living.
Spain June 22 preliminary CPI +10.2% vs +9.0% y/y expected
- Spain Preliminary CPI +10.2% vs +9.0% y/y expected
- Prior +8.7%
- HICP +10.0% vs +8.7% y/y expected
- Prior +8.5%
Latest data released by the National Statistics Institute – 29 June 2022
Annual inflation rate in Spain rose to 10.2% in June of 2022 up from 8.7% in May, much higher than market forecasts of 9%, preliminary estimates showed. It is the highest inflation rate since April of 1985, mainly due to rising cost of fuels and lubricants, food and non-alcoholic beverages and hotels, cafés and restaurants.
Excluding cost of food and energy, core inflation rose to 5.5%, the highest since August of 1993. The harmonized inflation rate surged to a record 10%. Compared to the previous month, both the national CPI and the EU harmonized surged 1.8%
Source: Destatis, TC, NSI
From The TradersCommunity Research Desk