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German inflation rose to 2.4% in May, the highest rate in more than two years, in a move that would likely intensify the debate over whether Europe’s ultra-light monetary policy could cause the economy to overheat more. great of the region.
The federal statistics agency said Monday that the harmonized index of consumer prices had reached a level last seen in October 2018, mainly due to a 10% year-on-year increase in energy prices. .
Conservative commentators in Germany have long feared excessive inflation and were concerned that the ECB’s weak monetary policy would cause the cost of living to rise. The Bundesbank has predicted that monthly inflation could reach 4% by the end of this year.
German inflation has risen faster than in most eurozone countries since the beginning of the year, driven by the reversal of the temporary German value-added tax cut, a new carbon tax and a basket weight of products used to calculate prices.
Earlier Monday, the Spanish statistical agency said its inflation rate had risen from 2% in April to 2.4% in May, mainly due to rising energy prices. In the same period, Italian inflation rose from 1% to 1.3%, said the country’s national institute of statistics.
Figures for price growth in the euro area will be published on Tuesday. Economists surveyed by Reuters expect block inflation to rise from 1.6 to 1.9% in May. This would be in line with the European Central Bank’s target of below 2%, but policymakers are expected to keep monetary policy unchanged when they meet next week.
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