HR: Inflation landed at 3.5% y/y in May
As anticipated, inflation growth accelerated few notches in May to 3.5% y/y (vs. 3.2% y/y in April), thus practically matching our expectations (EBCe 3.4% y/y). On a monthly level prices were up by 0.4%, with first estimate breakdown suggesting mixed performance food prices were up 1.2% m/m, while services kept steady momentum by increasing 0.6% m/m, thus maintaining their role as key drivers also on annual level. On the other hand, energy provided some relief by declining 1.1% m/m, while industrial good prices remained unchanged on a monthly level. Detailed breakdown will be available in mid-May, delivering more concrete insights. Looking ahead, we continue to see demand-side pressures remaining present, while supply-side factors should play a more neutral role. With recent inflation prints fitting overall well with the expectations, we see average FY25 CPI landing slightly above the 3% mark.