Euro area annual inflation is expected to be 8.6% in June 2022, up from 8.1% in May according to a flash estimate from Eurostat, the statistical office of the European Union.
Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (41.9%, compared with 39.1% in May), followed by food, alcohol & tobacco (8.9%, compared with 7.5% in May), non-energy industrial goods (4.3%, compared with 4.2% in May) and services (3.4%, compared with 3.5% in May).
In May 2022, the euro area seasonally-adjusted unemployment rate was 6.6%, down from 6.7% in April 2022 and down from 8.1% in May 2021. The EU unemployment rate was 6.1% in May 2022, stable compared with April 2022 and down from 7.3% in May 2021. These figures are published by Eurostat, the statistical office of the European Union.
Eurostat estimates that 13.066 million men and women in the EU, of whom 11.004 million in the euro area, were unemployed in May 2022. Compared with May 2021, unemployment decreased by 2.515 million in the EU and by 2.165 million in the euro area.
In May 2022, 2.467 million young persons (under 25) were unemployed in the EU, of whom 1.988 million were in the euro area. In May 2022, the youth unemployment rate was 13.3% in the EU and 13.1% in the euro area, down from 13.8% in both areas in the previous month.
Compared with April 2022, youth unemployment decreased by 95 thousand in the EU and by 89 thousand in the euro area. Compared with May 2021, youth unemployment decreased by 708 thousand in the EU and by 608 thousand in the euro area.
In May 2022, the unemployment rate for women was 6.5% in the EU, stable compared with April 2022. The unemployment rate for men was 5.7% in May 2022, also stable compared with the previous month. In the euro area, the unemployment rate for women decreased from 7.2% in April 2022 to 7.1% in May 2022, while the unemployment rate for men decreased from 6.3% to 6.2%.
Per the US Bureau of Economic Analysis Personal income increased$113.4 billion (0.5 percent) in May. Disposable personal income (DPI) increased $96.5 billion (0.5 percent) and personal consumption expenditures (PCE) increased $32.7 billion (0.2 percent).
Real DPI decreased0.1 percent in May and Real PCE decreased0.4 percent; goods decreased 1.6 percent and services increased 0.3 percent. The PCE price index increased 0.6 percent. Excluding food and energy, the PCE price index increased 0.3 percent.
The increase in personal income in May primarily reflected increases in compensation and proprietors’ income that were partly offset by a decrease in government social benefits. Within compensation, the increase reflected increases in both private and government wages and salaries. The increase in proprietors’ income was led by nonfarm income. The decrease in government social benefits primarily reflected a decrease in “other” benefits that was partly offset by increases in Medicaid and Medicare. Within “other” benefits, the decrease primarily reflected a decline in transfers to nonprofit health care providers through the Provider Relief Fund.
The $32.7 billion increase in current-dollar PCE in May reflected an increase of $76.2 billion in spending for services that was partly offset by a decrease of $43.5 billion in spending for goods. Within services, increases inhousing and utilities (led by housing), “other” services (led by international travel), and health care (led by hospitals) were the largest contributors. Within goods, a decrease in spending on motor vehicles and parts (led by new motor vehicles) was partly offset by an increase in gasoline and other energy goods (led by motor vehicle fuels).
Personal outlays increased $38.3 billion in May. Personal saving was $1.01 trillion in May and the personal saving rate—personal saving as a percentage of disposable personal income—was 5.4 percent.
The PCE price index for May increased 6.3 percent from one year ago, reflecting increases in both goods and services. Energy prices increased 35.8 percent while food prices increased 11.0 percent. Excluding food and energy, the PCE price index for May increased 4.7 percent from one year ago.