Key facts
- Turkey's annual inflation rate reached 73.5% in May.
- Vietnam's inflation accelerated to 5.60% year-over-year in May.
- Switzerland's inflation rate remained unchanged in May.
- Brazil's inflation rate rose to 4.64% year-over-year in May.
- Sweden's preliminary inflation figures for May indicate an upward trend.
- Turkey's economy grew 2.5% year-on-year in the first quarter.
- Turkey experienced a 12.7% decline in exports in Q1.
- Household spending in Turkey increased by 4.8% in Q1.
- Vietnam's inflation drivers include housing, food, energy, and transport costs.
- Brazil's inflation exceeded its central bank's target band.
Global inflation data for May presents a varied picture, with Turkey reporting a sharp increase in its annual inflation rate to 73.5%, surpassing economists' expectations. This marks another month of escalating prices in the Turkish economy. Concurrently, Vietnam's consumer price index (CPI) accelerated to 5.60% year-over-year in May, the highest rate since 2020 and the third consecutive monthly rise. The primary drivers for Vietnam's inflation include costs associated with housing, food, energy, and transport, with services inflation remaining persistent and core inflation challenging the full-year target.
Switzerland's inflation rate, however, remained unchanged in May, defying economists' predictions. This stability is attributed to the strength of the Swiss franc, which appears to be mitigating the impact of higher energy prices. This development could influence the Swiss National Bank's forthcoming decision on interest rates. Brazil's IPCA-15 inflation rate climbed to 4.64% year-over-year in May, exceeding both the 4.55% consensus estimate and the upper limit of the Central Bank of Brazil's target band. Monthly inflation in Brazil also rose beyond expectations.
Preliminary inflation figures from Sweden for May suggest an upward trend, though specific details regarding the extent and contributing factors are pending the release of the full inflation report. These figures will be closely observed by the Riksbank. In a separate economic development, Turkey's Gross Domestic Product (GDP) expanded by 2.5% year-on-year in the first quarter, a figure that fell short of forecasts. While household spending saw a 4.8% increase, a significant 12.7% decline in exports and a contraction in industrial manufacturing negatively impacted overall economic growth.