Inflation in the EU Reaches Record 8.8 Percent in May, in Croatia Above EU Average

Inflation in the EU and the eurozone reached its highest levels in May since Eurostat began publishing data, and in Croatia, it was above the Union average for the second consecutive month, according to the latest report.

At the EU level, inflation measured by the harmonized index of consumer prices (HICP) rose to 8.8 percent in May, the highest level since the beginning of 2001 when Eurostat began publishing data. In April, it was 8.1 percent.

In the eurozone, it jumped from 7.4 to 8.1 percent, the highest level since 1996, confirmed by the European statistical office, which published the estimate at the end of May. In May of last year, it was 2.3 percent in the EU and 2.1 percent in the eurozone.

The largest contribution to the inflation rate in the eurozone in May came from energy prices, which accounted for 3.87 percentage points. This was followed by food prices with a contribution of 1.59 percentage points and service prices with 1.46 percentage points. Energy prices in May in the euro area were 39.1 percent higher than last year, while food prices rose by nine percent.

Jump in the Baltics

Consumer prices rose the most in May in the Baltic countries, by 20.1 percent in Estonia, 18.5 percent in Lithuania, and 16.8 percent in Latvia. Double-digit inflation rates were also recorded in Croatia, Bulgaria, the Czech Republic, Greece, Hungary, the Netherlands, Poland, Romania, and Slovakia.

In Croatia, consumer prices measured by the HICP in May were 10.7 percent higher than in the same month last year, according to Eurostat’s report. In April, they were up by 9.6 percent. Close to Croatia in terms of consumer price growth in May were Hungary and Greece, with inflation rates of 10.8 and 10.5 percent, respectively.

The lowest inflation rates were recorded in May in France and Malta, at 5.8 percent. Only in the Netherlands did prices rise slightly less in May than in April, according to Eurostat’s report.