Inflation in the eurozone reached 3.2%. The market is almost confident in the ECB rate hike
Eurozone inflation continued to accelerate / Photo: Markus Photo and video / Shutterstock.com
Inflation in the eurozone accelerated in May to 3.2% in annual terms, according to the preliminary assessment of Eurostat. The main factor of growth was the rise in the price of energy resources as a result of the Iranian crisis. However, this was not a surprise for the market - the indicator coincided with the forecast of economists surveyed by Reuters. However, inflation remains significantly above the target level of the European Central Bank - the regulator is focused on 2%.
The new data strengthens the already strong arguments in favor of ECB policy tightening at the June 11 meeting, the agency notes. According to LSEG's forecast, cited by CNBC, traders now estimate the probability of a key rate hike of 25 basis points at 94%.
After the release on inflation, the euro exchange rate remained virtually unchanged at around $1.164 per euro. The yield on 10-year German government bonds, which are considered a benchmark for the eurozone debt market, fell by six basis points.
What and where prices have gone up
Energy prices rose by 10.9% in May, while services rose by 3.5% - these two categories were the main drivers of inflation. The regulator may also be concerned about the acceleration of core inflation, which does not take into account volatile energy and food prices. It rose to 2.5% after 2.2% in April.
The news is supplemented.
This article was AI-translated and verified by a human editor
