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Inflation rebounds in the European Union and reaches 2.6% in May

Inflation rebounds in the European Union and reaches 2.6% in May

According to the statistical office, when analyzing the main components of inflation in the eurozone, “services are expected to register the highest annual rate in May”, specifically 4.1%, compared to 3.7% in April .

Inflation rebounds in the European Union and reaches 2.6% in May

Reuters

Inflation is increasing again in the eurozone, according to preliminary data published this Friday by Eurostatthe European statistical office, which show an increase of two tenths in May, bringing the year-on-year rate to 2.6%, compared to 2.4% in April.

«Eurozone annual inflation is expected to be 2.6% in May 2024, up from 2.4% in April», says Eurostat’s preliminary estimate.

According to the statistical office, when analyzing the main components of inflation in the eurozone, «services are expected to register the highest annual rate in May »specifically 4.1%, compared to 3.7% in April.

They will be followed by food, alcohol and tobacco, with a rate of 2.6%, below the 2.8% registered in April, and non-energy industrial goods, for which Eurostat estimates a rate of 0.8%, compared to to 0.9% in April. Finally, energy will show an increase to 0.3%, compared to -0.6% in April.

The ECB will begin to fine banks for climate misdeeds

The European Central Bank (ECB) is in the process of implementing an unprecedented measure by imposing fines on several financial institutions due to their long-standing failure to address the impact of climate change.

According to sources familiar with the matter, up to four financial entities are under sanctions for failing to comply with the deadlines established by the ECB to evaluate their exposure to climate risks. TOAlthough the amounts are not yet confirmed, they are expected to be mostly symbolic, said the sources, who requested anonymity due to the confidentiality of the matter.

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This measure represents an extraordinarily strong step to ensure compliance with ECB regulations regarding climate risk management by banks. After years of pressure, the former head of banking supervision, Andrea Enria, mentioned in an interview with Bloomberg in September that the ECB would resort to these sanctions as an alternative to requiring greater capital reserves.

Fines accrue daily and can amount to up to 5% of a bank’s average daily revenue. For example, for an entity with annual revenues of €10 billion ($10.9 billion), this could mean daily penalties of up to €1.4 million in a worst-case scenario, although the actual fines imposed could be considerably lower.

Source: Ambito

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