The world's prices continue to rise and the ongoing conflict in Ukraine only makes things worse. Within a year, food prices rose by 12.6% and energy prices soared by 35.4% within the OECD. According to the organization, inflation is on the rise, with an average rate of 9.6% in May, which is the highest level since August 1988, 34-years ago.
According to the data released by the organization on Tuesday, global inflation has risen from 9.2% in April. It has also increased in all countries in the group, except for Colombia, Japan and Luxembourg. Ten of the 34 OECD nations recorded double-digit CPI rates in May. The top three were Turkey (73.5%) and Estonia (20%) while Lithuania (18.9%).
Core inflation, which excludes fresh food and energy, increased by 2.10 percent in the OECD, up from 6.4% the previous month.
When you take into account the inflation in the European Union countries (EU), the rate falls to 8.8% in May. Spain is at an average of 8.7%, but higher than neighboring countries like the United Kingdom (7.9%), France (5.2%), Germany (7.9%), Italy (6.8%), and Portugal (8.8%).
Spain saw an increase in energy prices by 34.2% and 11% respectively in May. According to the INE, the first calculation shows that inflation rose to 10.2% in June due to an increase in fuel prices and food prices. This is the highest level since 1977. Core inflation has already reached 5.5%, six tenths higher than May.
Eurostat's June preliminary estimate shows that the Euro area experienced the largest rise in inflation, at 8.6%. Core inflation, however, fell to 3.7%. All countries, except Germany and the Netherlands, saw prices rise.
These data are nothing but a pressure point for the European Central Bank (ECB), in light of the approaching cycle of interest rate increases. Luis de Guindos (ECB Vice President) warned last week that the recession could be imminent if the current environment continues.