Italy's EU-harmonised CPI jumps to 3.3% in May, slightly above forecast
Italy's EU-harmonised consumer price index climbed to 3.3% year-on-year in May, slightly above market expectations. Energy and services led the rise. The data reopens debate on euro-area inflation dynamics ahead of the European Central Bank's June meeting.
Photo: Duc Tinh Ngo / PexelsItaly's EU-harmonised consumer price index (HICP) climbed to 3.3% year-on-year in May. The rate, up from 3.1% in April, came in just above the 3.2% median expectation of economists polled by Reuters. The upside surprise was driven by Middle East-linked energy pressure and persistent services inflation.
Francesco Maria Chelli, president of Italy's national statistics institute (Istat), said services-sector inflation rose to 4.1% year-on-year and food inflation came in at 2.9% year-on-year. Tito Boeri of Bocconi University in Milan said the print 'adds an additional layer of sensitivity' to the European Central Bank's June rate decision.
The ECB Governing Council will meet on 5 June. Capital Economics' Andrew Kenningham raised the probability that President Christine Lagarde could pause rate cuts to 35%. Italy's ten-year government bond yield rose 7 basis points after the print. This article is sector analysis and not investment advice; readers should consult qualified professional opinion before acting on this information.
More from Europe
EU prepares plan to reduce technology dependence on foreign suppliers
The European Union has prepared a comprehensive roadmap aimed at reducing technology dependence on foreign suppliers, according to Anadolu Ajansı. The plan targets greater European capacity in semiconductors, artificial intelligence and cloud services. Negotiations on financing and implementation will continue among member states.
Germany's Merz says Berlin fell short of its UN Security Council goals
Germany's Chancellor Friedrich Merz acknowledged that Berlin fell short of its goals in the United Nations Security Council non-permanent seat vote. Germany had been a candidate for the 2027-2028 term. Merz said the outcome would prompt a review of Germany's foreign policy positioning.
Lloyds, Halifax and Bank of Scotland back after online banking outage
Online banking and mobile app services at Lloyds Bank, Halifax and Bank of Scotland, all part of Lloyds Banking Group, returned to operation after an outage lasting several hours. The banking group apologised for the disruption to customers.