Key facts
- Czech CPI inflation slowed to 2.1% in May.
- Russia's annual inflation rate declined to 2.4% in April.
- Vietnam's CPI accelerated to 5.60% in May.
- Brazil's IPCA-15 inflation rate increased to 4.64% in May.
- Brazil's unemployment rate fell to 5.8% in April.
- Indonesia's CPI inflation accelerated to 3.08% in May.
- Philippines CPI inflation decelerated to 6.8% in May.
- Sri Lanka's national CPI inflation accelerated to 4.7% in April.
- Oman's annual inflation rate eased to 3.3% in April.
Global inflation data from May presents a varied economic landscape. In the Czech Republic, consumer price index (CPI) inflation eased to 2.1% year-over-year in May, falling below market expectations of 2.3%. This slowdown was broad-based, impacting both volatile prices and core inflation, which is estimated to have decreased to 2.8% year-over-year.
Russia's annual inflation rate declined to 2.4% in April, significantly below the Central Bank of Russia's 4.0% target. This broad-based disinflation was influenced by a strong ruble and the fading impact of a VAT increase, potentially paving the way for a larger interest rate cut in June.
In contrast, Vietnam's consumer price index (CPI) accelerated to a post-2020 high of 5.60% year-over-year in May. This marks the third consecutive monthly increase, with housing, food, energy, and transport costs being the primary drivers. Services inflation remains entrenched, and core inflation is straining the full-year target.
Brazil experienced an increase in inflation, with its IPCA-15 rate rising to 4.64% year-over-year in May. This figure surpassed the 4.55% consensus estimate and exceeded the upper limit of the Central Bank of Brazil's target band. Monthly inflation also rose above expectations. However, Brazil's unemployment rate decreased to 5.8% in April, down from 6.1% in March and below the consensus estimate of 5.9%. Average real wages rose 8.9% year-over-year to a record BRL 3,732.
Indonesia's year-on-year CPI inflation accelerated to 3.08% in May, exceeding the 2.97% consensus forecast. Rising food prices were the primary driver, with annual pressures also stemming from personal care and transport costs. Bank Indonesia had previously raised rates by 50 basis points.
The Philippines saw a deceleration in consumer price index inflation, which slowed to 6.8% year-over-year in May. This figure fell below analyst forecasts and the central bank's expectations. The slowdown was primarily driven by decreases in transport, food, and non-alcoholic beverages, as well as housing costs.
Sri Lanka's national CPI inflation accelerated to 4.7% year-on-year in April, driven by a substantial 14.3% surge in transport prices. Core inflation also increased to 4.4% from 2.7% in March.
Oman's annual inflation rate eased to 3.3% in April. This moderation was driven by a slowdown in transportation costs, which rose 6.0% year-over-year. However, food inflation accelerated to 6.3% year-over-year, while housing and utilities saw a minimal 0.1% increase.