Key facts
- India's inflation likely rose to 4.0% in May.
- Vietnam's consumer price index (CPI) accelerated to 5.60% year-over-year in May.
- Brazil's IPCA-15 inflation rate increased to 4.64% year-over-year in May.
- Indonesia's year-on-year CPI inflation accelerated to 3.08% in May.
- Philippines CPI inflation decelerated to 6.8% year-over-year in May.
- Sri Lanka's national CPI inflation accelerated to 4.7% year-on-year in April.
- Oman's annual inflation rate eased to 3.3% in April.
- Czech CPI inflation eased to 2.1% year-over-year in May.
- Ghana's annual inflation rate accelerated to 3.7% in May.
- Mozambique's credit to the private economy grew 2.7% in March.
Global inflation figures for May present a varied economic landscape, with several nations reporting an uptick in consumer price growth. India's inflation is estimated to have climbed to 4.0% in May, nearing the Reserve Bank of India's target, largely influenced by rising vegetable and fuel costs. This marks a potential shift from recent periods of lower inflation, necessitating vigilance from the central bank. Vietnam recorded its highest post-2020 inflation rate at 5.60% year-over-year in May, the third consecutive monthly increase. This acceleration is attributed to housing, food, energy, and transport costs, with persistent services inflation and core inflation challenging the full-year target. Brazil's IPCA-15 inflation rate rose to 4.64% year-over-year in May, surpassing consensus estimates and exceeding the Central Bank of Brazil's upper target band, with monthly inflation also rising above expectations. Indonesia's CPI inflation accelerated to 3.08% year-on-year in May, exceeding forecasts, driven primarily by rising food prices, with personal care and transport costs also contributing to annual pressures. Bank Indonesia had previously implemented a 50 basis point rate hike. In contrast, the Czech Republic experienced a slowdown in inflation, with its CPI easing to 2.1% year-over-year in May, falling below market expectations of 2.3%. This broad-based deceleration affected both volatile and core inflation, with core inflation estimated to have decreased to 2.8%. The Philippines saw its CPI inflation decelerate to 6.8% year-over-year in May, below analyst forecasts and central bank expectations, primarily due to decreases in transport, food, non-alcoholic beverages, and housing costs. Sri Lanka reported a 4.7% year-on-year inflation rate in April, with transport prices surging by 14.3%, and core inflation increasing to 4.4% from 2.7% in March. Oman's inflation rate eased to 3.3% in April, a moderation driven by a slowdown in transportation cost increases, 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. Separately, Mozambique's commercial banks reported a 2.7% year-on-year growth in credit to the private economy in March, reaching MZN 104.4 billion, led by household and trade credit, while net government credit decreased.