Consumer prices showed a 0.4 percent monthly rise in the final data for May. This was in line with their provisional estimate and left intact the previously reported 2.0 percent annual rate, itself up 0.4 percentage points from its final April mark.
However, the flash HICP was revised 0.1 percentage points firmer to show a 0.5 percent monthly increase although this too left the yearly rate unchanged at 2.3 percent after a final 1.8 percent print last time.
The monthly acceleration in the annual CPI rate was largely due to energy, where inflation jumped from 6.3 percent to 10.0 percent, and to a lesser extent, food, which saw a 0.2 percentage point rise to 1.8 percent. Manufacturing continued to see falling prices – down 0.2 percent on the year after a 0.3 percent decline in April – but services gained a tick to 1.5 percent. Core prices were 0.2 percent firmer on the month which was enough to lift their yearly rate from 0.8 percent to 1.0 percent. While hardly a threat to price stability, this was still a multi-year high.
The final statistics for May confirm a relatively robust month for consumer prices. However, with Easter distortions still likely a factor and the real economy having slowed significantly this year, the pick-up in inflation could yet prove only short-lived.