Key facts
- Turkey's annual inflation rate reached 73.5% in May.
- Vietnam's annual inflation rate reached 5.60% in May.
- Brazil's inflation rate reached 4.64% in May.
- Switzerland's inflation rate remained unchanged in May.
- Sweden's preliminary inflation figures for May show an upward trend.
- Turkey's Q1 GDP grew by 2.5% year-on-year.
- Turkey's exports declined by 12.7% in Q1.
- Turkey's industrial manufacturing contracted in Q1.
- Vietnam's inflation has increased for three consecutive months.
- Brazil's inflation exceeded the central bank's target band.
Global inflation continues to present a complex picture, with several nations reporting significant price increases in May. Turkey's annual inflation rate surged to a striking 73.5%, surpassing economists' expectations and underscoring a persistent rise in prices. This surge comes as Turkey's economy also registered a 2.5% year-on-year GDP growth in the first quarter, a figure that fell short of forecasts. The Q1 growth was impacted by a substantial 12.7% decline in exports and a contraction in industrial manufacturing, although household spending saw a 4.8% increase.
Vietnam's consumer price index (CPI) accelerated to 5.60% year-over-year in May, marking its third consecutive monthly increase and reaching a post-2020 high. The rise in Vietnam is broad-based, driven primarily by escalating costs in housing, food, energy, and transport. Services inflation remains entrenched, and core inflation is straining the full-year target.
Brazil's IPCA-15 inflation rate climbed to 4.64% year-over-year in May, exceeding the consensus estimate of 4.55% and breaching the upper limit of the Central Bank of Brazil's target band. Monthly inflation in Brazil also rose above expectations.
In contrast, Switzerland's inflation rate remained unchanged last month, defying economists' predictions. This stability may be attributed to the strength of the Swiss franc, which appears to be counteracting the impact of elevated energy prices. This situation could influence the Swiss National Bank's upcoming interest rate decision.
Sweden's preliminary inflation figures for May also indicate an upward trend. While specific details on the magnitude and contributing factors are pending the full inflation report, these data will be closely monitored by the Riksbank.