Key insights
- Italy's harmonized CPI surged to 3.3% year-on-year in May, exceeding forecasts and driven by rising energy costs linked to Middle East tensions. Core inflation also accelerated. This uptick in European inflation, particularly in a significant economy like Italy, could influence the European Central Bank's (ECB) monetary policy decisions, potentially delaying rate cuts and creating a more cautious global rate environment, which could indirectly pressure US equities.
ROME, May 29 (Reuters) - Italian EU-harmonised consumer prices (HICP) rose by 0.4% in May from the month before, with the annual inflation rate surging to 3.3% from 2.8% in April amid increasing energy costs due to turmoil in the Middle East, preliminary data showed on Friday.
The reading was slightly above a median forecast in a Reuters survey of 17 analysts which pointed to an increase of 0.3% month-on-month and a year-on-year rise of 3.2%.
Official statistics agency ISTAT also reported that the main domestic price index (NIC) was up 0.4% month-on-month in May and up 3.2% annually, following a 2.7% annual increase in April.
Core inflation (net of fresh food and energy) was running at 1.8% year-on-year on the HICP index in May, accelerating from 1.6% in April.
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