May 2022 Inflation Rates

 

The following are the estimated inflation rates for May 2022. While the exact rates aren't available yet, they are all expected to be higher than last month's levels. However, how will we know if these rates are correct? Let's look at some of the factors that may influence them. Inflation rates in May 2022 have been reported as 6.3%, 8.2%, 5.4%, and even 1.1% higher than this month.

6.3%

The harmonised index of consumer prices is released by Eurostat at the end of each reference month. Prices of non-energy industrial goods and services fell in May by an average of 4.2% and 3.5%, respectively. The index is calculated based on the composition of these countries at a particular time, and changes in this composition are taken into account through a chain index formula. The May 2022 release is set for 17 June.

8.2%

The Dutch central bank chief has warned that households could begin to doubt the ECB's ability to contain price increases if the harmonised consumer price index for May 2022 remains at the upper end of its anchored range. ECB officials will meet again on June 9 and formally end their bond purchasing program at the end of June. As inflation continues to rise, the central bank will continue to signal hikes and maintain its target of keeping prices stable.

5.4%

January 2022 inflation rate is unchanged, and the CPIH fell by 0.1%. The biggest contributions to the 12-month inflation rate this month were from housing and household services and non-alcoholic beverages. In addition, transportation contributed to the main monthly rate. However, despite the small contributions, the CPIH is still 5.4% higher than the January 2021 rate. The following table shows how the CPIH rate is affected by changes in the prices of the same items.

1.1%

The consumer price index in May 2022 rose by 1.1%, which is the lowest rate since February 2000. The increase is the result of the rise in the price of gas and electricity, and in April, these costs increased by 2.9%. However, these two categories are the only two that contributed to the overall CPIH inflation rate in April 2022. Housing and household services contributed 0.53 percentage points to the annual rate of inflation, the highest since January 2006.

2.5%

The May 2022 inflation rate was the highest since December 2017. There were some notable factors that contributed to the increase. One was a slight increase in the price of motor fuel. Prices of these fuels climbed by 0.25% between March and April, but were only slightly higher than last year's 1.8% rate. Another factor was a higher contribution from the second-hand car market, which grew by 0.37 percentage points between February and March of the same year.

3.5%

Inflation accelerated in April, reaching an annualized rate of 14.0%, up from 11.9% in March. In addition, the rate of input prices rose by 18.6% in April, the highest since records began. The largest contributions to annual rates of output and input inflation came from food and energy prices. Food and energy costs accounted for 62.9% of the increase in April 2022. The increase in prices pushed up the consumer price index.

4.5%

The CPI report for April showed that consumer prices rose faster than expected, which helped lift the overall inflation rate. However, this recent rise is driven by an explosive rise in energy and food prices. Since the start of the Ukrainian conflict on 24 February 2022, the rising cost of energy has significantly increased the price of commodities. Meanwhile, the ongoing conflict in Ukraine has thrown a wrench into global trade patterns, disrupting many supply chains and driving up prices.