Consumer prices rose 1.62% from the previous month in June, coming in above the 1.24% increase recorded in May. The print came on the back of a steep rise in food and non-alcoholic beverages, and recreation and culture prices. Transport prices also rose at a quick pace.
Meanwhile, inflation rise from 10.4% in May to 11.9% in June, the highest reading since February 2013. The trend pointed up as annual average inflation rose to 7.8% in June from 17.1% in May. Lastly, harmonized inflation rose to 11.6% in June from May’s 10.4%; June’s reading marked the highest print since February 2013.
Mate Jelic, analyst at Erste Bank, added:
“Record print in June was more or less expected but the key question remains when will inflation peak. Using global commodity markets as a leading indicator, we can see sharp decreases in a variety of materials in the last 30 days. […] Uncertainty remains high as ECB seems committed to start tightening despite fears of decelerating growth. NBS on the other hand hinted on their last meeting they are thinking about more direct measures, other than key rate hikes, to combat inflation. Bottom line, we continue to think inflation will peak in 3Q22, albeit normalization of prices will be a very gradual process.”
FocusEconomics panelists see inflation averaging 8.5% in 2022. In 2023, our panelists project inflation to average 4.8%.