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2026-05-29 16:06:53
[French and Spanish inflation hit new highs in May, further strengthening the case for a European Central Bank rate hike] ⑴ Inflation rates in France and Spain rose to their highest levels since 2024, providing further justification for a European Central Bank rate hike. ⑵ Data released on Friday showed that France's consumer price index rose 2.8% year-on-year in May, slightly below market expectations, as conflict drove up energy costs; Spain's index rose 3.6% year-on-year, in line with expectations. ⑶ A flurry of inflation data from major Eurozone economies will be released, helping ECB officials assess the extent to which the Middle East conflict has pushed up inflation and whether a response is needed. ⑷ Since the start of the Iranian conflict three months ago, ECB policymakers, from hawkish Executive Board members to dovish chief economists, have been signaling that borrowing costs are likely to need to be raised for the first time since 2023.
